Increases to the cap on a week’s pay and compensatory award cap announced

16 February, 2015
by: Cripps Pemberton Greenish

The Government has announced that on 6 April 2015 the limit on the calculation for a week’s pay (which is used for calculating statutory redundancy payments and the basic award in unfair dismissal claims) will increase from £464 to £475.

The compensation limits and minimum awards that apply to various types of tribunal claims will also increase. Most notably, the statutory cap for the compensatory award for unfair dismissal claims will increase from £76,574 to £78,335.

These new rates will apply when the ‘appropriate date’ for the cause of action (such as the date of termination in an unfair dismissal claim) occurs on or after 6 April 2015. For claims where the ‘appropriate date’ occurs before 6 April, the previous rates will still continue to apply.