As in previous editions of Newswire 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 2015:
Maternity, Paternity, Adoption and Shared Parental Pay – effective from 5th April 2015
The current rate of Statutory Maternity Pay, Statutory Paternity Pay/Additional Statutory Paternity Pay, Statutory Adoption Pay and Shared Parental Pay will increase from £138.18 per week to £139.58 per week.
Additional paternity leave and pay will only be available in respect of babies whose expected week of childbirth is before 5th April 2015, or for children who are placed for adoption before that date due to the introduction of new shared parental leave and pay provisions.
Redundancy Pay – effective from 6th April 2015
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 £464 per week to £475 per week. The maximum payment under the Statutory Redundancy Scheme will increase from £13,920 to £14,250 (£475 x 30 weeks).
Compensatory Award for Unfair Dismissal – effective from 6th April 2015
The limit on the amount of compensatory award for unfair dismissal will increase from £76,574 to £78,335 (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 2015
During periods of lay-off or short-time working an employee may be entitled to a Statutory Guarantee Payment. The current rate of £25.00 per day will increase to £26.00 per day (subject to a maximum of five days or £130 in any three months).
Statutory Sick Pay – effective from 6th April 2015
The rate of Statutory Sick Pay (SSP) will increase from £87.55 per week to £88.45 per week.
The lower earnings threshold will increase from £111 per week to £112 per week.
All the above changes come into force at the beginning of April 2015 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.