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New Cap on Employment Protection Awards

From 6 April 2015 the maximum week’s pay for unfair dismissal basic awards and statutory redundancy pay and the cap on the compensatory award which may be awarded in the majority of unfair dismissal cases have been increased, and will apply to dismissals which occur on or after that date.

Award  Old Cap New Cap

Basic Award - cap on a week’s pay.

The maximum Basic Award will rise from £13,920 to £14,250

£464 £475

Maximum Compensatory Award 

The maximum total award for unfair dismissal, i.e., maximum unfair dismissal compensation plus maximum basic award, has risen from £90,494 to £92,585.

£76,574 £78,335

Statutory Redundancy Pay - cap on a week’s pay.

The maximum Statutory Redundancy Pay will rise from £13,920 to £14,250

£464 £475

How Can You Avoid Getting Caught Out?

  • Contact Us - we will undertake full review of your current arrangements and provide you with our findings and recommendations
  • Ensure you have approproraie contracts should be drafted and issued to ensure the nature of the working relationship is clearly determined.
  • Give us a call on 0800 612 4772 and we'll help you to prevent problems and protect your business.

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