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Rate Changes To Unfair Dismissal Basic Award And Statutory Redundancy Pay Take Effect From April 2018

The rates for the unfair dismissal basic award, the unfair dismissal compensatory award, and for statutory redundancy pay will increase in April 2018 under the The Employment Rights (Increase of Limits) Order 2018. The rate changes will take effect from the 6th April 2018.

Unfair Dismissal Basic Award

The cap on average weekly pay increases from £489.00 to £508.00 on the 6th April 2018. Hence, the unfair dismissal basic award in employment tribunal cases will increase, and the maximum is now £15,240.00 (i.e. 20 x £508.00 x 1.5)

Unfair Dismissal Compensatory Award

The maximum amount that can be awarded for the unfair dismissal compensatory award will increase from £80,541.00 to £83,682 on the 6th April 2018.

Statutory Redundancy Pay

Again, the cap on average weekly pay increases from £489.00 to £508.00 on the 6th April 2018. Hence, statutory redundancy pay will increase, and the maximum is now £15,240.00 (i.e. 20 weeks x £508.00 x 1.5).  That is, from the 6th April 2018, the amount of statutory redundancy pay an employee is entitled to is the number of weeks which can be taken into account multiplied by the lower of either their average weekly wage or £508.00. The number of weeks which can be taken into consideration depends on how long the employee has been continuously employed by their employer and how their years of continuous service relate to certain age bands. For each complete year of continuous service between the ages of 18 and 21, they will receive half a week’s pay. For each complete year of continuous service between the ages of 22 and 40, they will receive one week’s pay. For each complete year of continuous service between the ages of 41 and 65, they will receive 1½ weeks’ pay. The maximum number of years which can be taken into account is 20.

Other Changes

Other changes include the following (which all apply from the 6th April 2018):-

  • Failure to comply with a tribunal order to reinstate or re-engage the employee (26-52 weeks pay maximum capped at £508.00 per week): increases from £12,714.00 – £25,428.00 to £13,208.00 – £26,416.00
  • Minimum basic award for dismissal on trade union, health & safety, occupational pension scheme trustee, employee representative, and working time grounds: increases from £5,970.00 to £6,203.00
  • Right to be accompanied not properly adhered to (up to 2 weeks pay capped at £508.00 per week): maximum increases from £978.00 to £1,016.00
  • Failure to provide written statement of particulars (between 2-4 weeks pay capped at £508.00 per week): increases from £978.00 – £1,956.00 to £1,016.00 – £2,032.00.
  • Failure to comply with the flexible working regulations (up to 8 weeks pay capped at £508.00 per week): maximum increases from £3,912.00 to £4,064.00
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