New Employment Rates & Compensation Limits

The new limits for unfair dismissal awards and redundancy pay are:

• The limit on a week's pay, for the purposes of calculating statutory redundancy and compensation for unfair dismissal, increases to £700 (from £643)
• The maximum unfair dismissal compensatory award increases to £115,115 (from £105,707)
• The maximum statutory redundancy payment and unfair dismissal basic award increases to £21,000 (from £19,290)

These new limits will apply where the effective date of termination falls on or after 6 April 2024.

Other statutory rate increases include:

• National Minimum Wage – hourly rate (for age 23+) increases to £11.44 (from £10.42) on 1 April 2024.
• Statutory sick pay increases to £116.75 per week (from £109.40) on 8 April 2024.