The Employment Rights (Increase of Limits) Order 2015 has been published and will increase the compensation limits and minimum awards that apply to a range of employment claims. The increases made by the Order reflect the increase in the retail prices index of 2.3% from September 2013 to September 2014. The new limits can be found in the Schedule to the Order and the key changes are as follows:
– The limit on the compensatory award for unfair dismissal increases from £76,574 to £78,335.
– The maximum amount of “a week’s pay” for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal increases from £464 to £475.
– The minimum amount of basic award of compensation where dismissal is automatically unfair by virtue of sections 100(1)(a) and (b), 101A(d), 102(1) or 103 of the Employment Relations Act 1996 increases from £5,676 to £5,807.
– The new rates take effect where the 'appropriate date' for the cause of action falls on or after 6 April 2015. The full list of ‘appropriate date’ provisions can be found in Article 4(2).
Content Note
The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
