Annual increases to statutory compensation limits
The Employment Rights (Increase of Limits) Order 2021 has been laid before Parliament and will revise the compensation limits for certain tribunal awards and other statutory payments from 6 April 2021. What are the relevant increases?
The The Employment Rights (Increase of Limits) Order 2021 will increase the maximum amount of a “week’s pay” from £538 to £544 from 6 April 2021. A “week’s pay” is used to calculate statutory redundancy payments, payments to employees in the event of insolvency and various awards including the unfair dismissal basic and additional awards. Other key increases are:
- the maximum compensatory award for unfair dismissal will rise from £88,519 to £89,493 (there is an additional cap of one year’s salary on the unfair dismissal compensatory award)
- the minimum basic award for certain unfair dismissals, such as dismissals for reasons of trade union membership or activities, health and safety duties or acting as an employee representative or workforce representative, will go up from £6,562 to £6,634.
However, the limit on the daily amount of statutory guarantee pay will remain at £30.
The increases apply where the event giving rise to the entitlement to compensation or other payment occurs on or after 6 April 2021. In unfair dismissal claims, that date is the effective date of termination of employment. The limits previously in force will still apply where the effective date of termination falls before 6 April 2021.
Related Topics
-
VAT cut for children's holiday activities over summer
The government has announced a temporary reduction in the rate of VAT applying to certain children's holiday activity programmes during the summer holidays. The measure is intended to help families with childcare costs during the school break. What has changed?
-
HMRC launches new R&D advance assurance process
HMRC has introduced a new advance assurance process for research and development (R&D) tax relief claims, aimed at giving eligible companies greater certainty before submitting a claim. What does the new process involve?
-
Judge criticises use of fabricated AI-generated cases in HMRC appeal
A tax tribunal judge has criticised the use of apparently fabricated case references generated by artificial intelligence in an appeal against HMRC. The incident highlights growing concerns over the use of AI tools in legal and tax proceedings. What happened?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.