Changes to Statutory payments and limits for unfair dismissals

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Written by: Alcumus
28th March

Maternity, Paternity, Adoption and Shared Parental Pay - effective from 1st April 2018

The current rate of Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay and Shared Parental Pay will increase from £140.98 per week to £145.18 per week.

Redundancy Pay - effective from 6th April 2018

The maximum amount of “a week’s pay” for the purpose of calculating Statutory Redundancy Pay or for various awards, including basic or additional awards for compensation in respect of unfair dismissal, will increase from £489 per week to £508 per week. The maximum payment under the Statutory Redundancy Scheme will increase from £14,670 to £15,240 (£508 x 30 weeks).

Compensatory Award for Unfair Dismissal - effective from 6th April 2018

The limit on the amount of compensatory award for unfair dismissal will increase from £80,541to £83,682 (statutory cap).

The maximum compensatory award is the lower of the statutory cap or 52 weeks’ pay. This is 52 times one week’s actual gross pay for the employee at the time of dismissal, calculated in the usual way. The limit on a week’s pay does not apply.

Statutory Guarantee Payments - effective from 6th April 2018

During periods of lay-off or short-time working an employee may be entitled to a Statutory Guarantee Payment.  The current rate of £27.00 per day will increase to £28.00 per day (subject to a maximum of five days or £140 in any three months).

Statutory Sick Pay - effective from 6th April 2018

The rate of Statutory Sick Pay (SSP) will increase from £89.35 per week to £92.05 per week. 
The lower earnings threshold will increase from £113 per week to £116 per week.

National Living Wage/National Minimum Wage

The new rates for the National Living Wage and National Minimum Wage come into force from 1st April 2018:

All the above changes come into force in April 2018 and are reviewed annually.

If you have any queries in relation to the new rates/limits, please do not hesitate to contact your HR Consultancy team.