Employment rate changes

The annual increase to the compensation limit in the Employment Tribunal has come into effect. These rates apply if the effective date of termination (EDT) of the contract of employment is on or after 6 April 2019. The EDT is important because an employee has three months from this date to bring a claim to an Employment Tribunal.

The new rates are:

  • The maximum limit for a week's pay for statutory purposes has risen from £508 to £525
  • The maximum compensatory award for unfair dismissal has risen from £83,682 to £86,444
  • The minimum basic award for certain categories of unfair dismissal (including health and safety related dismissals) has risen from £6,203 to £6,408

Other statutory rates have increased, notably:

  • statutory sick pay increased on 6 April 2019 from £92.05 per week to £94.25 per week
  • statutory maternity pay, paternity pay, adoption pay and shared parental leave increased on 7 April 2019 from £145.18 per week to £148.68 per week and
  • the lower earnings limit rose from £116 to £118 (staff who earn less than this week will not qualify for statutory sick pay, maternity pay etc)

Identifying the EDT is a vital step if an employee wants to take action against their employer.

To discuss this or any other employment matter, contact us.