On 1st March 2024, the Government has declared the annual augmentation to Employment Tribunal compensation limits and other statutory payments, including statutory redundancy pay. These revised rates will be effective from 6th April 2024 and will be applicable to any pertinent events happening on or after this date.
The modifications will be implemented by The Employment Rights (Increase of Limits) Order 2024, which will be operational from 6th April 2024.
Here are some of the principal increases:
New Rate from 6 April 2024 | Previous Rate from 6 April 2023 | |
Cap on a Statutory Week’s Pay (used for calculating various awards, including statutory redundancy pay and unfair dismissal basic awards) | £700 | £643 |
Cap on Statutory Redundancy Pay | £21,000 | £19,290 |
Maximum Basic Award for Unfair Dismissal | £21,000 | £19,290 |
Maximum Compensatory Award for Unfair Dismissal | £115,115 (or a year’s gross pay, whichever is lower) | £105,707 (or a year’s gross pay, whichever is lower) |
Additional Award for Unfair Dismissal (where an employer does not comply with a re-instatement or re-engagement order) | £18,200 to £36,400 | £16,718 to £33,436 |
Statutory Guarantee Pay | £38 per day (subject to a maximum of five days or £190 in any three months) | £35 per day (subject to a maximum of five days or £175 in any three months) |
These increased rates mirror the rise in the retail prices index of 8.9% from September 2022 to September 2023.
Paula Bailey advises, “Employers should take note of the increased rates from April 2024, especially if any redundancies or dismissals are being considered. Employers should also remember that April 2024 will see increases to the National Minimum Wage rates, as well as to statutory sick pay, maternity pay, paternity pay, adoption pay, shared parental pay etc. We will soon be publishing Howes Percival’s sought-after ‘facts and figures’ document containing all of the current rates, so stay tuned!”
For any additional information or assistance on the above, please get in touch with a member of the team.
