New rates have been introduced for statutory redundancy payments, a week’s pay for basic award and for limits on unfair dismissal claims. These will take place for dismissals on or after 6th April 2015. The increases are in line with the RPI measure of inflation which was 2.3%.
The new rate for a week’s pay which is used to calculate redundancy payment entitlements and basic awards will rise from £464 to £475. This means that the limit on compensation for unfair dismissal will also increase from £76,574 to £78,335. This will still of course be subject to the limit being the lower of that amount or 12 month’s salary for the Claimant. Given this additional limit the increase in the compensatory award for most Claimants will remain unchanged.