Huge new compensation limits announced

From 6th April 2017, new laws mean that employers face paying out even greater damages awards at tribunals. So, if you’re unsuccessful in defending a claim, here’s what you could end up having to pay:
  1. Maximum basic award for unfair dismissal and the maximum statutory redundancy payment: £14,670
  2. Maximum compensatory award for unfair dismissal: £80,541
  3. Maximum compensation award for unfair dismissal (basic and compensatory awards combined): Over £95,000
NB This only applies when the effective termination date is 6th April onwards
  1. Maximum week’s pay for calculating statutory redundancy pay: £489
  2. One day’s rate of statutory guarantee pay: £27
  3. Breach of contract compensation cap: £25,000
NB Employees can claim for higher amounts in the civil courts
  1. Minimum basic award for dismissal on the grounds of trade union membership or activities; acting as a health and safety, employee or workforce representative or carrying out duties as an occupational pension scheme trustee: £5,970
NB The same maximum as all other unfair dismissal cases
  1. Maximum compensation for discrimination: Unlimited
April is always a busy month when it comes to new laws for you and your business. We appreciate that it might be a lot to take in all at once. So, for more detail about these changes and how they affect you, please call Peninsula today.

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