News & Views

Employment Limits – Yearly Review


Each year, the government reviews the various limits applicable to sums payable or due in an employment context. It is important for employers to know about these changes to ensure that they are fully aware of their obligations, and the potential risks they face with respect to their employees.

With effect from 6 April 2018, the following new limits have come into force:

  • A week’s pay (for use when calculating statutory redundancy payments and the basic award of a Tribunal claim) = £508 (was £489)
  • Maximum amount of compensation that can be awarded for unfair dismissal claims = £83,682 (was £80,541) or 52 weeks’ salary (whichever is lower)

The new rates take effect when the “appropriate date” (e.g. date of termination) falls on or after 6 April. Before that date, the old rates apply even if payment is not actually made (or awarded) until after 6 April.

For further information on these changes, or any aspect of employment law or HR advice, please contact our employment team on 01727 832830 or at employment@sherrards.com.

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