Have a question?
033 3772 0409

Legal News

Compensation Limits to rise in employment cases (27 March 2018)

Date: 27/03/2018
Duncan Lewis, Legal News Solicitors, Compensation Limits to rise in employment cases

It is never a good time to be made redundant or face the prospect of losing your job. However, the compensation that can be awarded in the event of a dismissal is reviewed annually by Parliament.

The Employment Rights (Increase of Limits) Order 2018 will increase the compensation limit for unfair dismissal, guarantee pay and a week’s pay (used to calculate statutory redundancy and the basic award for unfair dismissal).

The order will come into effect from 6 April 2018 (the ‘appropriate date’), so that you will benefit from (or have to comply with) the increased limits if the cause of action falls on or after this date. For example, if an employee dismissed on or after 6 April 2018 and claims unfair dismissal, he/ she will be entitled to a compensatory award at the new upper limit. Anyone whose “appropriate date” falls before this will have their claim settled under the old limits.

According to the Order

  1. The maximum compensatory award in unfair dismissal case will increase to £83,682;


  2. The minimum basic award where the dismissal is unfair as a result of being an employee representative, a health and safety, occupational pension trustee or a trade union issue, will increase to £6,203;


  3. A ‘week’s pay’ used for calculating statutory redundancy payments and the basic award increases to £508, up from £489.


  4. Employers will have to pay £28 ‘guarantee pay’ for every day they are unable to provide employment on a day which their employee would usually work.

As an employer, it is important to understand your responsibility to adhere to employees’ rights. Duncan Lewis Solicitors’ employment team have over 20 years’ experience advising and supporting businesses on all aspects of the working relationship.

It is important to be aware of your rights as an individual employee. If you feel you have been mistreated by a former employer or at your current place of work, you should seek legal help as early as possible. A professional employment solicitor will support your claim.

Anthony Thompson is a Director in the employment department at Duncan Lewis, with over 20 years’ experience advising and supporting businesses and individuals on all employment matters including drafting contracts policies; assisting with performance and absence management; advising on disciplinary, grievance and discrimination investigations; negotiating severance arrangements (including advising on settlement agreements); whistleblowing; and managing litigation in the employment tribunal and the High Court.

Anthony advises on non-contentious issues including redundancy, contract variation and outsourcing exercises and TUPE. As an advocate he has achieved notable successes representing clients in the employment tribunals, negotiating significant settlements at private and judicial mediations.

For expert advice on any employment matter, call Anthony on 020 7014 7343 or email him on anthonyt@duncanlewis.com.


Duncan Lewis Employment Solicitors

Duncan Lewis employment lawyers act on behalf of claimants and respondents in all Employment Tribunal related matters in a variety of areas including unfair dismissal, redundancy, breach of contract, equal pay, maternity and paternity/adoption rights, whistleblowing and minimum wage.

We also have solicitors who offer expert guidance on the Working Time Regulations, health and safety, discrimination and the Equality Act 2010, settlement agreements, disciplinary and grievance procedures restrictive covenants and TUPE.

Our employment law specialists can represent all types of employers, large and small – as well as individual employees and groups of employees.

Call us now on 033 3772 0409 or click here to send online enquiry.
Duncan Lewis is the trading name of Duncan Lewis (Solicitors) Limited. Registered Office is Spencer House, 29 Grove Hill Road, Harrow, HA1 3BN. Company Reg. No. 3718422. VAT Reg. No. 718729013. A list of the company's Directors is displayed at the registered offices address. Authorised and Regulated by the Solicitors Regulation Authority . Offices all across London and in major cities in the UK. ©Duncan Lewis >>Legal Disclaimer, Copyright & Privacy Policy. Duncan Lewis do not accept service by email.