The maximum amount of compensation that is awarded to an employee should they be made redundant or be successful in a claim for unfair dismissal is determined by legislation and is reviewed each year.
Changes to the statutory limits for redundancy pay and the basic and compensatory awards at an Employment Tribunal have been announced.
As of 6 April 2020, the maximum amount of ‘a week’s pay’ for the purpose of calculating a redundancy payment or a basic award of compensation for unfair dismissal claim will increase to £538.
The limit on amount of compensatory award for unfair dismissal claim will increase to £88,519 or 12 months of the employee’s salary, depending on whichever amount is less.
Should you require further guidance with regard to a redundancy process or a tribunal claim please contact our Employment Team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.