Award limits and amounts payable under employment legislation

in Employment Law

From 6 April 2019, under the Employment Rights (Increase of Limits) Order 2019 (SI 2019/324), a number of limits applying to tribunal awards and other amounts payable under employment legislation will increase.

The new limits apply where the event that gives rise to the award or payment occurs on or after 6 April 2019.

Relevant statutory provision Subject of provision Limit from 6 April 2018 to 5 April 2019 Limit from 6 April 2019
Trade Union and Labour Relations (Consolidation) Act 1992, s.145E(3) Amount of award for unlawful inducement relating to trade union membership activities, or for unlawful inducement relating to collective bargaining. £4,059 £4,193
Trade Union and Labour Relations (Consolidation) Act 1992, s.156(1) Minimum amount of basic award of compensation where dismissal is unfair by virtue of the Trade Union and Labour Relations (Consolidation) Act 1992, s.152(1) or 153. £6,203 £6,408
Trade Union and Labour Relations (Consolidation) Act 1992, s.176(6A) Minimum amount of compensation awarded where individual excluded or expelled from union in contravention of the Trade Union and Labour Relations (Consolidation) Act 1992, s.174 and not admitted or readmitted by date of tribunal application. £9,474 £9,787
Employment Rights Act 1996, s.31(1) Limit on amount of guarantee payment payable to an employee in respect of any day. £28 £29
Employment Rights Act 1996, s.120(1) Minimum amount of basic award of compensation where dismissal is unfair by virtue of the Employment Rights Act 1996, s.100(1)(a) or (b), 101A(d), 102(1) or 103. £6,203 £6,408
Employment Rights Act 1996, s.124(1) Limit on amount of compensatory award for unfair dismissal. The lower of £83,682 and 52 times the claimant’s weekly pay The lower of £86,444 and 52 times the claimant’s weekly pay
Employment Rights Act 1996, s.186(1), paras.(a) and (b) Limits on amount in respect of any one week payable to an employee in respect of debt to which the Employment Rights Act 1996, part XII applies and which is referable to a period of time. £508 £525
Employment Rights Act 1996, s.227(1) Maximum amount of “a week’s pay” for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal. £508 £525

To calculate the basic award of compensation for unfair dismissal or a statutory redundancy payment, allow:

  • one-and-a-half weeks’ pay for each year of employment in which the employee was aged 41 or over;
  • one week’s pay for each year of employment in which the employee was aged between 22 and 40; and
  • half-a-week’s pay for each year of employment in which the employee was aged 21 or under.

The maximum number of years of employment to be taken into account is 20.

 

Source: Xpert HR