Section 34 of the Employment Relations Act 1999 provides for changes to employment law payments and awards in Great Britain under two Acts...

  • The Trade Union and Labour Relations (Consolidation) Act 1992 and
  • The Employment Rights Act 1996

Section 34 of the 1999 Act provides for an increase or decrease in the following statutory limits each year according to the year-on-year change in the Retail Price Index (RPI) at the previous September.

On 19 February 2018, the Department for Business, Energy and Industrial Strategy (BEIS) laid the Employment Rights (Increase of Limits) Order 2018 that reflects the increase in the RPI of 3.9% from September 2016 to September 2017.  These are effective from the ‘appropriate date’ of 06 April 2018 which reflects, in turn, the implementation date for these statutory changes as per the Enterprise and Regulatory Reform Act 2013.

This appropriate date is important and varies depending on the circumstances that give rise to the need for payment at the new rates (see regulation 4 of the above 2018 Order).  For example, in a redundancy situation, the new statutory minimum payment of £508.00 per week applies where the date of the redundancy is on or after 06 April 2018.

Headline notes

  • The daily amount of guarantee payment increases from £27 to £28
  • The value of ‘a week’s pay’ increases from £489 to £508 per week
  • The maximum compensatory award in unfair dismissal claims increases to £83,682 or one year’s net salary, whichever is the lower. This unfair dismissal cap has been in place since 29 July 2013
  • These do not apply in Northern Ireland where employment law is a devolved responsibility and different rates apply.  At the time of writing, these are not known and will probably not be known until business resumes in the Executive.  As it is, the Employment Rights (Increase of Limits) Order (Northern Ireland) 2016 continues to apply



Join our newsletter