The Employment Rights (Increase of Limits) Order 2014 has been published, increasing the limits on specified employment tribunal awards and other amounts payable under employment law from 6 April 2014. The key changes are as follows:
- The statutory limit on the amount of a week's pay where it applies, e.g. basic award for unfair dismissal, statutory redundancy payments, etc., will increase from £450 to £464.
- The maximum compensatory award for unfair dismissal increases from £74,200 to £76,574, but subject to the alternative cap of one year's salary, if this is less, which came into force on 29 July 2013.
- Guarantee pay increases from £24.20 a day to £25.
The Schedule to the Order sets out the new rates. The increases apply where the event giving rise to the entitlement to compensation, or other payments, occurred on or after 6 April 2014. Limits previously in force under the Employment Rights (Increase of Limits) Order 2012 are preserved by Article 4 of the Order in relation to cases where the appropriate date was before 6th April 2014. This means, for example, that in an unfair dismissal case the new rates apply to dismissals where the effective date of termination (EDT) falls on or after 6 April 2014, but where the EDT falls before 6 April, the old limits will still apply, regardless of the date on which compensation is awarded.
Content Note
The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
