6th April - increases to a 'week's' pay for compensation purposes
6th April 2017 sees the customary increases in dismissal compensation and a ‘week’s pay’ for the purposes of calculating various things, most commonly redundancy pay. If you want to know the various rates and for our explanation of when they might (an might not) apply, please read the full article.
6th April brings a raft of changes to employment law related compensation limits and included in these is the increase of the limit on unfair dismissal compensation payable, which increases from 6th April to the lower of a year’s gross salary or £80,541. For our article on actual compensation payments (which is normally very much lower) please click here.
Also increased slightly is the definition of a week’s pay which from 6th April will be the lower of an actual week’s pay or £489. Whilst use as the basis for various calculations, it most commonly appears in redundancy pay calculations, making the maximum statutory redundancy payment £14,670 for an employee with 20 years’ service all of which has been served above the age of 41 (hence 20 years X 1.5 weeks per year X £489.)
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