The annual increases in compensation in the employment tribunals will take effect on 6 April 2017. The new rates apply where the event giving rise to the compensation (such as the termination of employment) occurs on or after 6 April 2017. The most notable changes are as follows:
- The limit on a week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal has increased from £479 to £489.
- The maximum statutory redundancy payment and basic award for unfair dismissal have increased from £14,370 to £14,670.
- The maximum compensatory award for unfair dismissal has increased from £78,962 to £80,541.
- The maximum total compensation for unfair dismissal (i.e., the aggregate of the maximum basic and compensatory awards) has increased from £93,332 to £95,211.
The minimum hourly wages are also due to increase with effect from 1 April 2017 as follows:
- The National Living Wage for those aged 25 and above will increase from £7.20 to £7.50 per hour.
- The National Minimum Wage for those aged 21 to 24 will increase from £6.95 to £7.05 per hour.
- Rates have also increased for those aged under 21.