HM Insights

UK Employment Law: Changes to Statutory Rates and Tribunal Compensation Limits April 2016

As another fiscal year comes to an end, we set out the key changes to statutory rates and Employment Tribunal compensation limits that are to be implemented as of 06 April 2016.

  • The National Living Wage has been introduced for workers aged 25 and over entitling them to £7.20 per hour (effective from 01 April 2016).  
  • The limit on week’s pay for calculating redundancy and unfair dismissal basic award increase from £475 to £479
  • Maximum basic award for unfair dismissal and statutory redundancy payment increase from £14,250 to £14,370
  • Minimum basic award for dismissal on trade union, health and safety, occupational pension scheme trustee, employee representative and on working time grounds only increase from £5,807 to £5,853
  • Maximum compensatory award for unfair dismissal increases from £78,335 to £78,962
  • The maximum combined unfair dismissal award now available is £93,332

The following rates are to remain the same for the fiscal year 2016/17:

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  • The weekly rate of statutory shared parental, maternity, paternity and adoption pay to remain £139.58 per week.
  • Statutory sick pay to remain £88.45 per week.
  • The national minimum wage will remain the same until 01 October 2016
  • Workers aged 21-24 - £6.70 per hour
  • Workers aged 18-20 - £5.30 per hour
  • Workers aged 16-17 - £3.87 per hour
  • Apprentices under 19 or over 19 and in first year of the apprenticeship - £3.30 per hour.

Get in touch

If you have questions related to the Statutory Rates and Tribunal Compensation Limits, then please contact a member of our employment team.