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Updates to Employment Law Allowances

New Employment Limits Increase

As a result of the Employment Rights (Increase of Limits) Order 2015, employers will need to be aware of the new limits coming in to force as of 6 April 2015.

The most interesting increases include:

  1. The maximum payment for any one week in relation to the basic award or a redundancy payment is now £475.00.
  1. The maximum compensatory payment a Tribunal can award following a finding of unfair dismissal is increased to £78,335
  1. A revision to the limit of the daily Guarantee Payment has increased seen it rise to £26.00 per day.
  1. In cases involving dismissals relating to employee representative, trade union or occupational pension trustee reasons or in health and safety cases which are held to be unfair, the minimum basic award a Tribunal must order has increased to £5,807.00.

These figures will only effect any actions or dismissals which take place after the 6 April 2015.  Note they will not apply to current claims in the Employment Tribunals even if the date of the hearing is due to take place after 6 April 2015.

Whilst it is still a little while before these increases come in to play they should not be ignored and it would be sensible to consider whether any contractual documentation needs to be reviewed and or revised. Employers would do well to consider these increases if budgeting for any potential redundancies Remember, forewarned is forearmed, which in the world of Employment Law could not be more important.

For any queries on the new limits, contracts of employment, staff handbooks or any general employment related queries, please contact Alistair Haggerty at Josiah Hincks on 0116 2551811.