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.
