The following update has been received from Sandy Adirondack, voluntary sector legal expert: www.sandy-a.co.uk.
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Statutory redundancy pay, unfair dismissal and other awards
Annual changes to the statutory maximum “weekly pay” for calculating certain statutory entitlements, including statutory redundancy pay and basic compensation for unfair dismissal, take effect on 6 April each year in England, Wales and Scotland. These and related changes are based on the September retail prices index (RPI).
The maximum weekly pay for calculating statutory redundancy pay for redundancies taking effect in England, Wales and Scotland on or after 6 April 2019, and other payments based on this figure, is £525 (increased from £508).
For unfair dismissals in England, Wales and Scotland taking effect on or after 6 April 2019, the maximum basic award is £15,740 (increased from £15,240). For unfair dismissal on grounds of health and safety, trade union involvement, serving as an employee representative or occupational pension scheme trustee, or other reasons that are automatically unfair, the minimum basic award is £6,408 (increased from £6,203).
The maximum compensatory award for unfair dismissal is £86,444 (increased from £83,682), or 52 weeks’ of the employee’s normal pay, whichever is lower. The compensatory award is intended to compensate employees for loss of earnings, so normal pay in this context is as defined in s.221 of the Employment Rights Act 1996. It is not “weekly pay” as defined for calculating redundancy pay and the other awards listed above. The maximum does not apply in discrimination and whistleblowing cases, where there is no cap.
Where notice of dismissal has been given before 6 April 2019 but the notice period expires on or after 6 April, the new amounts apply. Where pay in lieu of notice has been given before 6 April, the effective date of dismissal is the date the actual dismissal takes effect, plus the statutory period of notice (one week’s notice per year of employment, to a maximum of 12 weeks). If this would take the effective date of dismissal to 6 April or later, the new amounts apply.
From 6 April 2019 the limit on guarantee payments when an employee is not provided with work is £29 per day (increased from £28).
The award for unlawful inducement relating to trade union membership, trade union activities or collective bargaining is £4,193 (increased from £4,059).
The minimum compensation for a worker unlawfully excluded or expelled from a trade union is £9,787 (increased from £9,474).
- Employment Rights (Increase of Limits) Order 2019: http://www.legislation.gov.uk/uksi/2019/324/made. Covers events taking place between 6 April 2019 and 5 April 2020.
- Employment Rights (Increase of Limits) Order 2018: http://www.legislation.gov.uk/uksi/2018/194/made. Covers events taking place between 6 April 2018 and 5 April 2019.
- Making staff redundant. https://www.gov.uk/staff-redundant. Basic information for employers on all aspects of redundancy, including calculating redundancy pay.
- Redundancy: Your rights: https://www.gov.uk/redundant-your-rights. Basic information for employees.
- Dismissing staff: https://www.gov.uk/dismiss-staff. Basic information for employers.
- Dismissal: Your rights: https://www.gov.uk/dismissal. Basic information for employees.