The Employment Rights Order 2020 will revise compensation limits for certain tribunal awards. The significant increases are:
- maximum limit of a week's pay (for statutory redundancy payments and basic and additional awards for unfair dismissal - £538 (currently £525)
- maximum compensatory award for unfair dismissal - £88,519 (currently £86,444)
- minimum basic award for certain unfair dismissals (dismissals for reasons of trade union membership or activities, health and safety duties, pension scheme trustee duties, or acting as an employee representative or workforce representative) - £6,562 (currently £6,408)
The Social Security Benefits Up-rating Order 2020 will increase the following statutory payments:
- sick pay rate will be £95.85 per week (currently £94.25 per week)
- maternity pay, paternity pay, adoption pay and shared parental pay will be £151.20 per week (currently £148.68 per week)
What Should Employers Be Aware Of?
Employers should be aware that in cases involving dismissal, the new figures will apply where the effective date of termination (EDT) falls on or after 6 April 2020.
The EDT is defined in legislation as:
- the date on which the employee's notice expires (where the employee has been terminated with notice), or
- the date on which termination takes effect (where the employee has been dismissed without notice).
For dismissals where the EDT was on or before 5 April 2020, the current rates will apply.
For specialist legal advice, please contact Michael Halsey in our Employment Law team on 020 7665 0842 or complete the form below.