Statutory Figures
In addition to the previously published statutory pay increases for 2024 (refer to our Newsletter No 158), the annual increase in compensation limits has been publicised. The limits apply to dismissals, including redundancies, occurring on or after 6th April 2024.
- £700.00 – the maximum amount of a week’s pay for calculating statutory redundancy pay and the basic award; (up from £643.00);
- £21,000.00 – the maximum statutory redundancy payment or basic award, i.e. 30 weeks (up from £19,290);
- £115,115.00 – the maximum compensatory award which can be made for unfair dismissal (up from £105,707.00) or one-year’s gross pay whichever is the lower;
These increases mean that the maximum total unfair dismissal award is now £136,115.00; although uplifts can add a further 25%.
Employees may be entitled to receive guarantee payments for up to five days of lay off in any three-month period. The maximum amount of such a Statutory Guarantee Payment will increase to £38.00 (up from £35.00) for any one day.
The new rates take effect where the ‘appropriate date’ for the cause of action (such as the date of termination in an unfair dismissal claim) falls on or after 6th April 2024.
Clients are welcome to raise any concerns with our team of Consultants, who would be pleased to advise you on any element of the issues arising from this newsletter. The information contained within this newsletter was correct at the time of publishing.
