The government has now released the new limits that will apply to statutory redundancy payments and various Employment Tribunal awards with effect from 6 April 2024. The recent high levels of inflation are reflected in the increases.
What are the changes in statutory redundancy pay?
The limit on a week’s pay for the purposes of statutory redundancy pay calculations will increase to £700 per week (increased from £643). For those who are dealing with a redundancy situation that takes effect on or after 6 April 2024, this new cap on a week’s pay needs to be applied when calculating the statutory redundancy pay entitlement.
Impact on Employment Tribunal awards
Various Employment Tribunal awards are also affected by this same increase. For example, the basic award in unfair dismissal claims also sees the limit on weekly pay increase to £700 per week (increased from £643). This means that the maximum unfair dismissal basic award for an employee with 20 or more years of employment and aged over 41 throughout will rise from £19,290 to £21,000.
The compensatory award in unfair dismissal claims continues to be capped at one year’s pay, but this is also subject to an overall financial cap. With effect from 6 April 2024, the new financial cap will become £115,115 (increased from £105,707).
How TWM can help you
For further information or advice about the employment law matters discussed in this article, please contact our specialist Employment Law team, who have the knowledge and experience to advise you.