Changes to redundancy entitlements

Redundancy Entitlements & Compensation Limits

Unfair dismissal compensation and redundancy pay is to increase where the effective date of termination of an employee’s employment is on or after 6 April 2018.

The maximum compensatory award for unfair dismissal will increase to £83,682 (up from £80,541) and the maximum amount of a week’s pay (used for calculating the unfair dismissal basic award and statutory redundancy payments) will increase to £508 (up from £489).

The following changes will come into force on 6 April 2018:

  • From 6 April 2018, the maximum week’s pay for calculating redundancy entitlement will increase from £489 to £508
  • The maximum compensatory award for unfair dismissal will change from £80,541 to £83,682.
  • Maximum basic award for unfair dismissal and statutory redundancy payment will increase from £14,670 to £15,240.
  • Statutory Sick Pay will increase from £89.35 to £92.05

From 1 April 2018, the National Living Wage and National Minimum Wage will change as follows:

Workers aged 25 and over: £7.83 an hour (National Living Wage)
Workers aged 21 and over: £7.38 an hour
Development rate for workers aged 18-20: £5.90 an hour
Young workers rate for workers aged 16-17: £4.20 an hour
Apprentice rate: £3.70 an hour

You can find some more helpful information here and the CIPD website have a very comprehensive information about Statutory rates and compensation limits

If you want more help regarding Redundancy Entitlements please contact us here

The articles published on this website, current at the date of publication, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your own circumstances should always be sought separately before taking any action.


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