international employment law firm alliance L&E Global
United Kingdom

UK: New Employment Rates & Compensation Limits

Authors: Heidi Watson, Ruth Bonino, Corinna Harris and Sophie Jackson

The new limits for unfair dismissal awards and redundancy pay are:

  • The limit on a week’s pay, for the purposes of calculating statutory redundancy and compensation for unfair dismissal, increases to £700 (from £643)
  • The maximum unfair dismissal compensatory award increases to £115,115 (from £105,707)
  • The maximum statutory redundancy payment and unfair dismissal basic award increases to £21,000 (from £19,290)

These new limits will apply where the effective date of termination falls on or after 6 April 2024.

Other statutory rate increases include:

  • National Minimum Wage – hourly rate (for age 23+) increases to £11.44 (from £10.42) on 1 April 2024.
  • Statutory sick pay increases to £116.75 per week (from £109.40) on 8 April 2024.
  • Family leave pay (statutory maternity, adoption, paternity and shared parental pay) increases on 8 April 2024 to £184.03 per week (from £172.48) or 90% of the employee’s average earnings, whichever is lower.

Rates and thresholds for employers 2024 to 2025

The Employment Rights (Increase of Limits) Order 2024