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 04 March 2016, the Department for Business Innovation and Skills (BIS) laid the Employment Rights (Increase of Limits) Order 2016 that reflects the increase in the RPI of 0.8% from September 2014 to September 2015.  These are effective from the ‘appropriate date’ of 06 April 2016, 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 2016 Order).  For example, in a redundancy situation, the new statutory minimum payment of £479.00 per week applies where the date of the redundancy is on or after 06 April 2016.

Headline notes:

  • The daily amount of guarantee payment of £26.00 has not increased from the figure effective 06 April 2015
  • The value of ‘a week’s pay’ increases from £475.00 to £479.00 per week
  • The maximum compensatory award in unfair dismissal claims increases to £78,962 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 effective 14 February 2016 – see my earlier post  at Employment Law Payments and Awards (Northern Ireland) 2016
Statutory Provision                                                                 Effective:

06   April 2015

06   April 2016

Award for unlawful   inducement relating to union membership or activities, or to collective   bargaining (1992 Act)

£3,800

£3,830

Minimum basic   award for unfair dismissal or selection for redundancy on grounds related to   union membership or activities (1992 Act)

£5,807

£5,853

Minimum   compensation awarded for exclusion or expulsion from a trade union (1992 Act)

£8,868

£8,939

Limit on daily   amount of guarantee payment (1996 Act)

£26.00

£26.00

Minimum amount of   basic award of compensation where dismissal is unfair by virtue of sections   100(1)(a) and (b), 101A(d), 102(1) or 103 (1996 Act)

£5,807

£5,853

Limit on amount of   compensatory award for unfair dismissal (1996 Act)

£78,335

£78,962

Maximum weekly   amount paid from National Insurance Fund to pay contractual debts owed on the   insolvency of the employer (1996 Act)

£475

£479

Maximum weekly   amount of a basic or additional award of compensation for unfair dismissal or   redundancy payment (1996 Act)

£475

£479

 

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