A number of new compensation limits come into force on 6 April 2014. These apply when the relevant event takes place on or after that date. So, for someone unfairly dismissed, the new rates only apply to dismissals with an effective date of termination on or after 6 April 2014.
| Previously | From 06.04.14 |
|
| Limits on guarantee payment (per day) | £24.20 | £25 |
| Limit on a week's pay for calculating e.g. redundancy payment, basic or additional award of compensation for unfair dismissal | £450 | £464 |
| Fixed award for unlawful inducement relating to trade union membership or activities or collective bargaining | £3,600 | £3,715 |
| Minimum basic award for unfair dismissal or selection for redundancy on grounds of trade union, health and safety, occupational pension scheme trustee, employee representative, working time | £5,500 | £5,676 |
| Maximum redundancy payment and basic award for unfair dismissal (30 weeks’ pay) | £13,500 | £13,920 |
| Maximum compensatory award for unfair dismissal | £74,200* | £76,574* |
| Minimum amount of compensation where individual excluded or expelled from union and not admitted or re-admitted by date of tribunal application. | £8,400 | £8,669 |
Jo Seery from Thompsons Solicitors commented: “It is also important to note that an additional cap was introduced by the Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013 SI 2013/1949, which provides that, for those dismissed after 28 July 2013, the limit shall be the lower of either £74,200 or 52 week's pay.”
* The statutory cap does not apply when the employee is dismissed unfairly or selected for redundancy for reasons connected with health and safety matters (such as performing their duties as a health and safety rep or bringing concerns about health and safety issues to their employer’s attention), or public interest disclosure (whistleblowing). Nor does the statutory cap apply if a Tribunal finds that the dismissal was discriminatory under the Equality Act 2010.