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Annual Compensation Limit Increase

The Department of Business Innovation and Skills has published the annual increase in compensation payments before Parliament. This can be found in The Employment Right (Increase of Limits) Order 2016. The new limits will apply to dismissals or detriments and certain other claims occurring on or after 6 April 2016.

The changes are minor however, employers should be aware of the new figures:

  • A week’s pay for the purpose of calculating a redundancy payment or various awards including the basic compensation for unfair dismissal- £479 (Currently £475)
  • Maximum Compensatory award for unfair dismissal – £78,962 (Currently £78,335)

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