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March 31, 2017

Raising Rates: Tribunal Compensation Limits and National Minimum Wage 2017

The annual increases in compensation in the employment tribunals will take effect on 6 April 2017. The new rates apply where the event giving rise to the compensation (such as the termination of employment) occurs on or after 6 April 2017. The most notable changes are as follows:

  • The limit on a week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal has increased from £479 to £489.
  • The maximum statutory redundancy payment and basic award for unfair dismissal have increased from £14,370 to £14,670.
  • The maximum compensatory award for unfair dismissal has increased from £78,962 to £80,541.
  • The maximum total compensation for unfair dismissal (i.e., the aggregate of the maximum basic and compensatory awards) has increased from £93,332 to £95,211.

The minimum hourly wages are also due to increase with effect from 1 April 2017 as follows:

  • The National Living Wage for those aged 25 and above will increase from £7.20 to £7.50 per hour.
  • The National Minimum Wage for those aged 21 to 24 will increase from £6.95 to £7.05 per hour.
  • Rates have also increased for those aged under 21.

The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.

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