6th April – increases to a ‘week’s’ pay for compensation purposes

6th April 2017 sees the customary increases in dismissal compensation and a ‘week’s pay’ for the purposes of calculating various things, most commonly redundancy pay. If you want to know the various rates and for our explanation of when they might (an might not) apply, please read the full article.

6th April brings a raft of changes to employment law related compensation limits and included in these is the increase of the limit on unfair dismissal compensation payable, which increases from 6th April to the lower of a year’s gross salary or £80,541.

Also increased slightly is the definition of a week’s pay which from 6th April will be the lower of an actual week’s pay or £489. Whilst use as the basis for various calculations, it most commonly appears in redundancy pay calculations, making the maximum statutory redundancy payment £14,670 for an employee with 20 years’ service all of which has been served above the age of 41 (hence 20 years X 1.5 weeks per year X £489.)

If you’re thinking of outsourcing your HR why not contact myhrdept.co.uk. With Outsourced HR support packages from only £120 per month (and start-up packages from just £70 per month) and support for one off HR projects  available , we believe we offer the best combination of quality and price available in the UK. Call us on 01628 820515 to discuss your requirements or contact us and we’ll call you back.

We use Cookies – by using this site or closing this message you’re agreeing to our Cookies Policy