Changes to compensation limits and the national minimum wage:

22 February, 2018
by: Cripps Pemberton Greenish

The new compensation limits have now been published and will come into force from 6 April 2018. The figures apply to dismissals where the effective date of termination is on or after 6 April 2018.

There will be an increase to the limit on:

Unfair Dismissal

The maximum basic award for unfair dismissal has increased from £14,670 to £15,240; and the maximum compensatory award for unfair dismissal from £80,541 to £83,682.

A week’s pay calculation

A week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal has increased from £489 to £508.

Discrimination

Whilst there remains no cap on awards for discrimination, the ‘Vento bands’ are used for awarding injury to feelings.  These bands were increased as follows, for claims presented on or after 11 September 2017:

  • A lower band (for the least serious cases such as one off incidents) of £800 to £8,400.
  • A middle band (serious cases) of £8,400 to £25,200.
  • An upper band (the most serious cases with a lengthy campaign of discriminatory harassment) of £25,200 to £42,000, with the most exceptional cases capable of exceeding £42,000.

Statutory payments

Statutory sick pay will rise from £89.35 to £92.05 per week.

Statutory maternity, adoption, paternity and shared parental pay will go up from £140.98 to £145.18 per week.

National minimum wage rates

As mentioned in our previous blog detailing what to expect in 2018, the national minimum wage rates have increased:

  • £7.83 per hour (from £7.50) aged 25 and over
  • £7.38 per hour (from £7.05) aged 21 – 24
  • £5.90 per hour (from £5.60) aged 18 – 20
  • £4.20 per hour (from £4.05) aged 16 -17

The apprentice rate increases from £3.50 to £3.70 per hour.