Compensation Rates Increased 2024.

Compensation Rates Increased 2024.

From 6 April 2024, there will be increases in compensation rates relating to employment tribunal claims, statutory redundancy and other related rates.

The key areas are below.

A Weeks Pay – Redundancy

The Government have now announced that it will increase the maximum amount of a “week’s pay” from £643 to £700 from 6 April 2024.

Background

A “week’s pay” is used to calculate statutory redundancy payments, payments to employees in the event of insolvency and various awards including the unfair dismissal basic and additional awards.  The above-mentioned increase means the maximum basic award for unfair dismissal and statutory redundancy pay (30 weeks’ pay, subject to the limit on a weeks’ pay) will increase from £19,290 to £21000.

Further Information

Other key increases are:

• •The maximum compensatory award for unfair dismissal will rise from £105,707 to £115, 115 (there is an additional cap of one year’s salary on the unfair dismissal compensatory award, whichever is the lesser).
• The minimum basic award for certain unfair dismissals, such as dismissals for reasons of trade union membership or activities, health and safety duties or acting as an employee representative or workforce representative, will go up from £7,836 to £8,533.
• Finally, the limit on the daily amount of statutory guarantee pay, which is used to pay employees for the first 5 workless days if you lay them off work will increase from £35 per day to £38.

 Actions

The new limits will apply to dismissals occurring on or after 6th April 2024. This includes any dismissal by reason of redundancy.

For further guidance on all other statutory rate changes from April 2024, please visit YourHR.guide