Huge new compensation limits announced

Kate Palmer - Associate Director of Advisory

March 24 2017

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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