Statutory Redundancy Pay Archives - EMPLOYEE BENEFITS BLOG

Increase in UK Employment Protection Awards

by Anthony A. Bongiorno, Katie Clark and Paul McGrath | Apr 3, 2018 | Employment

The compensation limits on Employment Tribunal awards and certain other amounts payable under UK employment legislation will increase as of 6 April 2018.

This alert sets out the changes in full and highlights important consequences for employers.

Access the full article.

UK Employment Alert: Increase in UK Employment Protection Awards and New Mandatory National Living Wage

by Katie Clark and Paul McGrath | Apr 6, 2016 | Employee Benefits, Employment

The compensation limits on Employment Tribunal awards and certain other amounts payable under UK employment legislation will be increased as of April 6, 2016.

Read the full UK Employment Alert.

Increase in UK Employment Protection Awards

by Katie Clark | May 29, 2015 | Employment

The compensation limits on Employment Tribunal awards and certain other amounts payable under UK employment legislation increased as of 6 April 2015. The key changes are set out below.

Increase in UK Employment Protection Awards

What Does This Mean for Employers?

The changes took effect on 6 April 2015 and apply to dismissals that occurred on, or will occur after, that date.

It is important for employers to note that

If an employee was given notice prior to 6 April 2015, but the notice period expired on 6 April or will expire on a future date, the new limits above will apply to that dismissal.
If an employee’s employment is terminated by means of a payment in lieu of notice, the effective date of termination (EDT) is the actual date the dismissal takes effect, plus the amount of statutory notice applicable to the employee, i.e., one week per year of employment, up to a maximum of 12 weeks. If the statutory notice would take the EDT to or beyond 6 April 2015, the new limits will apply.

An employer’s exposure in the event of an unfair dismissal claim will also rise and should therefore be factored into decision-making regarding litigation or settlement strategies.

Increase in UK Employment Protection Awards

by Katie Clark and Paul McGrath | Mar 13, 2014 | Employment

The compensation limits on Employment Tribunal awards and certain other amounts payable under UK employment legislation will increase as of 6 April 2014. The key changes are set out below.

What Does This Mean for Employers?

The changes will take effect on 6 April 2014 and will be applicable to dismissals taking effect on or after that date.

It is important for employers to note that:

If an employee is given notice prior to 6 April 2014, but the notice period will expire on or after 6 April 2014, the new limits set out above will apply to that dismissal.
If an employee’s employment is terminated by means of a payment in lieu of notice, the effective date of termination (EDT) is the actual date the dismissal takes effect, plus the amount of statutory notice applicable to the employee, i.e., one week per year of employment, up to a maximum of 12 weeks. If the statutory notice would take the EDT to or beyond 6 April 2014, the new limits will apply.

Employers’ exposure in the event of an unfair dismissal claim will rise and should therefore be factored into decision making regarding litigation or settlement strategies.

UK Employment Alert: Increase in Employment Protection Awards

by McDermott Will & Emery | Apr 9, 2013 | Employment

by Katie Clark and Paul McGrath

The compensation limits on Tribunal awards will increase as of 1 February 2013. The key changes are set out below.

Statutory Redundancy Pay

The maximum amount permitted for calculation of a week’s pay will rise from £430 to £450; the maximum entitlement to Statutory Redundancy Pay will therefore rise from £12,900 to £13,500.

Basic Award

The current maximum amount for a week’s pay will rise from £430 to £450; the maximum Basic Award will therefore rise from £12,900 to £13,500 (which would be awarded to an employee aged 61+ with 20+ years service).

Minimum Basic Award for Defined Dismissals

The minimum Basic Award a Tribunal can award for certain dismissals, i.e., those relating to certain employee representative, health and safety and working time cases, will rise from £5,300 to £5,500.

Maximum Compensatory Award

The maximum Compensatory Award a Tribunal can award in most cases of unfair dismissal will rise from £72,300 to £74,200.

The maximum total award for unfair dismissal (i.e. maximum unfair dismissal compensation plus maximum basic award) will therefore rise from £85,200 to £87,700.

What Does This Mean for Employers?

The changes will take effect on 1 February 2013 and will be applicable to dismissals taking effect on or after that date.

It is important for employers to note that:

If an employee is given notice prior to 1 February 2013, but the notice period will expire on or after 1 February 2013, the new limits set out above will apply to that dismissal.
If an employee is paid in lieu of notice, the effective date of termination (EDT) is the actual date, plus the amount of statutory notice applicable to the employee, i.e., one week per year of employment, up to a maximum of 12 weeks. If the statutory notice would take the EDT to or beyond 1 February 2013, the new limits will apply (but see also our most recent employment alert How to Terminate Employment and Exercise a Payment in Lieu of Notice Clause).

Employers’ exposure in the event of an unfair dismissal claim will rise and should be factored into decision making regarding litigation or settlement strategies.