The Employment Rights (Increase of Limits) Order 2024 has been laid before Parliament and will come into force from 6 April 2024. The Order increases the limits applying to certain awards of employment tribunals and to other amounts payable under employment legislation. The main changes are:

• maximum amount of a “week’s pay” which is used for the purposes of calculating statutory redundancy payments, the unfair dismissal basic or additional award and payments to employees in the event of insolvency – will increase from £643 to £700
• limit on the amount of the unfair dismissal compensatory award – will increase from £105,707 to £115,115 (there is an additional cap of 52 weeks’ gross pay on the compensatory award)
• limit on the daily amount of statutory guarantee pay – will increase from £35 to £38.

The increases will apply where the event giving rise to the entitlement to compensation or other payment occurs on or after 6 April 2024. Where the relevant event was before 6 April 2024, the old limits will continue to apply.

The Order does not extend to Northern Ireland, as Northern Ireland sets its own increases.

Source: New feed