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Government announces increase in maximum weekly pay and compensatory award

By Claire Maclean
March 13, 2020
  • Compensation
  • Pay, benefits and bonuses
  • Redundancy payments
  • Unfair dismissal
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With effect from 6 April 2020:

  • the statutory limit on a week’s pay (used primarily to calculate statutory redundancy payments and basic awards in unfair dismissal claims) will increase from £525 to £538 per week.  Each year, the cap is increased by roughly 4%, but this year’s increase is approximately 2.5%.  This will apply to dismissals which take place on or after 6 April 2020; and
  • the maximum compensatory award for an ‘ordinary’ unfair dismissal claim will increase from £86,444 to £88,519 or one year’s gross pay (whichever is lower).
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Claire Maclean

About Claire Maclean

Claire is experienced in advising employer clients in the public and private sectors on a wide range of contentious and non-contentious matters. Her expertise ranges from providing practical and commercial advice on all day-to-day HR queries to providing strategic advice on complex business reorganizations, redundancies and TUPE transfers. Claire has considerable experience in advising clients on all aspects of TUPE transfers, whether business transfers or changes in service provider.

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