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Economy Minister Diane Dodds today announced an increase in the limits for payments and awards to workers in employment rights cases.

Taking effect from April 6, the limit on the compensatory award for unfair dismissal rises from £88,693 to £89,669. Also, the maximum amount of ‘a week’s pay’ for the purpose of calculating redundancy payments rises from £560 to £566.

The increased limits relate to a range of employment rights including:

  • statutory redundancy payments;
  • the basic and compensatory awards for unfair dismissal;
  • the limit on guarantee payments made when employees are not provided with work; and
  • the minimum basic award for unfair dismissal in health and safety and certain other cases.

The Minister said: “In the unfortunate event that workers find themselves in the position of receiving these types of payments or awards, I want to assure them that they will be calculated appropriately and that this is protected by law.”

Legislation adjusting limits relating to a range of employment rights is made annually to reflect changes in the rate of inflation as measured by the Retail Prices Index (RPI).