The Government has recently announced the annual increases to a week’s pay for redundancy purposes and the maximum unfair dismissal compensation which an Employment Tribunal can award. These changes will take effect from 6 April 2015.
If you are seeking to make redundancies which take effect on or after 6 April 2015, a week’s pay for the purposes of statutory redundancy pay will rise from £464 to £475.
As a result of this rise, from 6 April 2015 the maximum amount of statutory redundancy pay that an employee could receive, depending on their age, weekly pay and length of service will be £14,250.
The maximum compensatory award for unfair dismissal is also increasing from £76,574 to £78,335. However, for employees with a salary of less than £78,335, any compensation would be capped at the lower amount of their annual salary.
Other statutory payments which will rise from 6 April 2015 are Statutory Sick Pay, which rises from £87.55 to £88.45 per week and family friendly payments such as maternity, paternity or adoption pay which increases from £138.18 to £139.58 per week.
If you have any queries about these changes, please do not hesitate to contact a member of the Employment Team.