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Annual increases on compensation limits

The annual increase has been announced setting out the new compensation limits for employment law claims. The changes below will take effect from 6 April 2016:

  • Maximum amount of a week’s pay of £479. This is used to calculate a redundancy payment and the unfair dismissal basic award. Currently the maximum is £475
  • Limit on amount of unfair dismissal compensatory award: £78,962 (and subject to 52 weeks’ actual pay if that is less than this figure). This new limit is an increase from the current figure of £78,335
  • Minimum amount of unfair dismissal basic award for trade union, health and safety, working time representative, pension scheme trustee and employee representative dismissals: £5,853 (increased from £5,807)


This briefing is for guidance purposes only. RadcliffesLeBrasseur LLP accepts no responsibility or liability whatsoever for any action taken or not taken in relation to this note and recommends that appropriate legal advice be taken having regard to a client's own particular circumstances.

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