New Limits For Unfair Dismissal And Redundancy Payments

Payments and awards made to workers in employment rights cases rise in line with inflation

In the event of a dismissal, new payment and award limits will apply from 14 February 2016. The increased limits relate to a range of employment rights including: statutory redundancy payments; the basic and compensatory awards for unfair dismissal; the limit on guarantee payments made when employees are not provided with work; and the minimum basic award for unfair dismissal in health and safety, and certain other cases.

The annual increase in limits come into operation in Northern Ireland under the Employment Rights (Increase of Limits) Order (Northern Ireland) 2016.

New payment and award limit rates

The main changes are:

  • a week’s pay (eg for calculating statutory redundancy payments and the basic award) will increase from £490 to £500
  • the maximum compensatory award for unfair dismissal will increase from £78,400 to £79,100
  • guarantee pay increases from £25.60 a day to £25.90 a day
  • The minimum basic award in health and safety dismissal cases will increase from £5,900 to £6,000

Legislation adjusting limits relating to a range of employment rights is made annually to reflect changes in the rate of inflation. The figures are different to those in Great Britain.