New compensation limits

The following compensation limits and minimum awards will apply from 6 April 2017:

• The maximum compensatory award increases to £80,541 (from £78,962).
• The limit on a week’s pay increases to £489 (from £479). This is used to calculate such things as statutory redundancy payments and the basic award for unfair dismissal.
• The daily rate of guarantee pay increases to £27 (from £26).
• The minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons increases to £5,970 (from £5,853).

The new rates take effect where the ‘appropriate date’ for the cause of action (such as the date of termination in an unfair dismissal claim) falls on or after 6 April 2017. If it falls before that the current rates will apply.