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New ET rates and limits from 6 April 2015

New rates and limits applicable to Employment Tribunal claims have been announced and will take effect from 6 April 2015.

The increases are set out in the Employment Rights (Increase of Limits) Order 2015.  The increases will apply to a number of different claims such as dismissal on grounds related to trade union membership or activities where the minimum basic award will increase from £5,676 to £5,807. 

However, the main change for employers to be aware of are the changes to the maximum amount of a week's pay (which is the basis for calculating statutory redundancy payments) and to the upper limit on the compensatory award in unfair dismissal claims.

A "week's pay" will increase from £464 to £475.  This means that the maximum statutory redundancy payment or basic award will increase from £13,920 to £14.250.

The upper limit on the compensatory award in unfair dismissal claims will increase from £76,574 to £78,335.

All of these changes will apply where the "relevant date", such as the date of dismissal, is on or after 6 April 2015.

For further information please contact our Head of Employment, Paul Ball on 0113 246 2312 or paulball@3volution.co.uk  

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