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
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