Compensation Payments Increase

21 April 2016

NMW

The annual increases to The Employment Rights (Increase of Limits) Order 2016 came into effect on 6th April 2016.  These increases apply to compensation payments for dismissals whether unfair or constructive, redundancy payments etc.  Only cases on or after 6th April would be subject to these increased amounts.

A brief breakdown is noted below together with the usual statutory payments.

There are changes to almost all compensation payments with the most relevant being an increase for redundancy calculations from £475 p/w to £479 p/w and maximum compensation for unfair dismissal increasing from £78,335 to £78,962.

All other statutory payments remain as follows:-

-    Statutory Sick Pay = £88.45 p/w.

-    Statutory Maternity Pay = 90% average weekly earnings before tax for first six weeks then, £139.58 or 90% average weekly earnings for 33 weeks. 

-    Statutory Maternity Pay = 90% average weekly earnings before tax for first six weeks then, £139.58 or 90% average weekly earnings for 33 weeks.  

-    Statutory Paternity Pay – £139.58 or 90% average weekly earnings for two weeks.

-    Statutory Adoption Pay – Pay for up to 39 weeks at 90% average weekly earnings for first six weeks then £139.58 or 90% average weekly earnings for 33 weeks.
-    Statutory Shared Parental Leave – £139.58 or 90% average weekly earnings.