Changes to statutory payments limits for unfair dismissal

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 6th April 2014:

Maternity, Paternity and Adoption

The current rate of Statutory Maternity Pay, Statutory Paternity Pay/Additional Statutory Paternity Pay and Statutory Adoption Pay will increase from £136.78 per week to £138.18 per week.

Redundancy Pay

The maximum amount of “a week’s pay” for the purpose of calculating a Statutory Redundancy Pay or for various awards including basic or additional awards for compensation in respect of unfair dismissal will increase from £450 per week to £464 per week. The maximum payment under the Statutory Redundancy Scheme will increase from £13,500 to £13,920 (£464 x 30 weeks).

Compensatory Award for Unfair Dismissal

The limit on the amount of compensatory award for unfair dismissal will increase from £74,200 to £76,574 (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

During periods of lay-off or short-time working an employee may be entitled to a Statutory Guarantee Payment.  The current rate of £24.20 per day will increase to £25.00 per day (subject to a maximum of five days or £125 in any three months).

Statutory Sick Pay

The rate of Statutory Sick Pay (SSP) will increase from £86.70 per week to £87.55 per week.

The lower earnings threshold will increase from £109 per week to £111 per week.

All the above changes come into force on 6th April 2014 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.