Kate Brooks
Partner, Solicitor & Head of Employment/HR Services
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Date Published:10 Mar 2017 Last Updated:25 Oct 2021

Increase in statutory redundancy payments from 6 April 2017

Employment Law Advice

On 6 April 2017 the weekly cap for statutory redundancy will increase from £479 to £489. This means that the maximum statutory redundancy payment increases from amount to amount.

This increase is not retrospective and only applies for redundancies from 6th April 2017 onwards.

Other rates that will increase are as follows:

Rate Current figure From 6 April 2017
The maximum compensatory award which a tribunal can make in unfair dismissal claims £78,962 £80,541
Maximum limit on a week’s pay (used for the purpose of calculating statutory redundancy pay and basic awards in unfair dismissal claims) £479 £489
The minimum basic award for other unfair dismissals (due to health and safety duties, for reasons of trade union membership, occupational pension scheme trustee reasons or acting as an employee representative) £5,853 £5,970
Maximum statutory redundancy payment £14,370 £14,670

The complete list of new rates are set out here.

Should you wish to discuss these changes, please do not hesitate to contact me on 01202 057754 or kate.brooks@ellisjones.co.uk.