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The maximum amount of statutory redundancy pay and the amount employment tribunals can award for unfair dismissal will increase from 6 April 2016.

For statutory redundancy payments (payable to an employee who has 2 years’ or more service) a week’s pay is subject to a maximum – a statutory redundancy payment is calculated by reference to an employee’s age, length of service and weekly pay.  Currently the cap on a week’s pay is £475 but as from 6 April 2016 it will increase to £479.

This also means that the top award for a statutory redundancy payment will increase from £14,250 to £14,370 as of 6 April 2016.

The maximum compensatory award for unfair dismissals is also increasing to £78,962 from 6 April 2016. Currently this is £78,335. However of course this is subject to the 12 month rule (i.e. the claimant’s compensatory award is based on either the lower of 12 months’ pay or the maximum award).

The above will apply where the effective date of termination is on or after 6 April 2016.

For any further information in relation to the above or any other employment law matter please contact either Caroline or Marie on 0113 357 1315 or email@