shutterstock_401575066

It is that time of year when we advise you of changes to statutory payments and the increase on limits for unfair dismissal.

Please find below a summary of the key changes which are effective from April 2017:

Maternity, Paternity, Adoption and Shared Parental Pay – effective from 2nd April 2017

The current rate of Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay and Shared Parental Pay will increase from £139.58 per week to £140.98 per week.

Redundancy Pay – effective from 6th April 2017

The maximum amount of “a week’s pay” for the purpose of calculating Statutory Redundancy Pay or for various awards including basic or additional awards for compensation in respect of unfair dismissal will increase from £479 per week to £489 per week. The maximum payment under the Statutory Redundancy Scheme will increase from £14,370 to £14,670 (£489 x 30 weeks).

Compensatory Award for Unfair Dismissal – effective from 6th April 2017

The limit on the amount of compensatory award for unfair dismissal will increase from £78,962 to £80,541 (statutory cap).

The maximum compensatory award is the lower of the statutory cap or 52 weeks’ pay.  This is 52 times one week’s actual gross pay for the employee at the time of dismissal, calculated in the usual way.  The limit on a week’s pay does not apply.

Statutory Guarantee Payments – effective from 6th April 2017

During periods of lay-off or short-time working an employee may be entitled to a Statutory Guarantee Payment.  The current rate of £26.00 per day will increase to £27.00 per day (subject to a maximum of five days or £135 in any three months).

Statutory Sick Pay – effective from 6th April 2017

The rate of Statutory Sick Pay (SSP) will increase from £88.45 per week to £89.35 per week.

The lower earnings threshold will increase from £112 per week to £113 per week.

National Living Wage/National Minimum Wage

As previously advised the new rates for the National Living Wage and National Minimum Wage come into force from 1st April 2017:

Age Over 25 21 to 24 18 to 20 Under 18 Apprentice
Current Rates (£ph) 7.20 6.95 5.55 4.00 3.40
From April 17 7.50 7.05 5.60 4.05 3.50

 

All the above changes come into force in April 2017 and are reviewed annually.

If you have any queries in relation to the new rates/limits, please do not hesitate to contact your HR Consultancy team.

Written by Marie-Clare Swallow, Senior HR Consultant