Annual Increase to Compensation Limits and Minimum Awards

Caroline Cobain
Caroline Cobain
Legal Director
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The annual increases to compensation limits and minimum awards that are payable under employment legislation have just been announced.

This will take effect from 6 April 2017 (http://www.legislation.gov.uk/uksi/2017/175/contents/made), including:

  • The compensatory award cap for claims of unfair dismissal increases from £78,962 to £80,541.
  • The minimum basic compensatory award where dismissal is unfair by virtue of health and safety, trade union, employee representative, or occupational pension reasons increases from £5,853 to £5,970.
  • Guarantee payments payable to an employee per day, increase from £26 to £27.
  • The statutory limit on a week’s pay to an employee for the purposes of calculating redundancy payments and for various other awards, including the basic or additional award in unfair dismissal claims, will increase from £479 to £489.

Where claims have been raised prior to 6 April 2017 and/or the relevant act or omission complained of occurred before 6 April 2017, the existing rates will continue to apply regardless of when compensation is awarded.

Please do not hesitate to get in touch with us on 0141 331 5150 if you have any questions.

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