UP-TO-DATE STATISTICS EFFECTIVE FROM 6 APRIL 2018
What can I expect?
Compensation limits and minimum awards will increase again with effect from 6 April 2018.
Things to note:
- the cap on the compensatory award for unfair dismissal will rise from £80,541 to £83,682 or 1 year’s salary;
- the cap on a week’s pay for the purposes of calculating statutory redundancy pay and basic awards for unfair dismissal claims, will increase from £489 to £508;
- guarantee pay for layoffs will increase from £27 to £28 per day; and
- the minimum basic award in unfair dismissal cases where dismissal is because of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £5,970 to £6,203.
These new rates take effect where the “appropriate date” for the relevant claim (e.g. the termination date in an unfair dismissal claim) falls on or after 6 April 2018.
Remember that if the appropriate date falls before 6 April, the old limits will still apply, irrespective of when compensation might be awarded.
National Minimum Wage
April 2018 will also see the National Minimum and Living Wage increase, and the applicable hourly rates from April 2018 will be as follows:
- 25+ is £7.85 per hour.
- 21-24 is £7.38 per hour.
- 18-20 is £5.90 per hour.
- 16-17 is £4.20 per hour.
- Apprentices £3.70 per hour.
Pay for time off work
Maternity Paternity Adoption and Shared Parental Leave
Statutory Maternity and Adoption Leave
1st 6 Weeks 90% of average wage next 33 weeks £145.18 per week unless weekly wage is lower
Statutory Paternity Pay
2 weeks at £145.18 per week unless weekly wage is lower
Shared Parental Leave
33 weeks £145.18 per week unless weekly wage is lower
Statutory Sick Pay
Up to 28 weeks at £92.05 per week provided the employee earns at least £116.00 per week
Holidays – Full time employees are entitled to 5.6 weeks including statutory holidays.
For help with this or any other human resource issue please contact me on 0203 640 7748 or at email@example.com
How to calculate redundancy pay?
|1.5 Weeks Pay||Each year of employment in which employee is aged 41 and above|
|1 Weeks Pay||Each year of employment in which employee is aged 22-40|
|0.5 Weeks Pay||Each year of employment in which employee is aged 21 and under|
|Maximum Weekly Pay||£508|
|Maximum number of years||Last 20 worked|
Increase in maximum awards and statutory payments
The maximum awards for unfair dismissal and the amount of a week’s pay for statutory purposes will increase where the effective date of termination falls on or after 6th April 2018. There is also an increase in the minimum basic award for specific unfair dismissals (including dismissals relating to trade union membership or activities, health and safety duties and acting as an employee representative). The increases are set out below:
|Compensation limit||Current figure||From 6th April 2018|
|Max. compensatory award for unfair dismissal||£80,451||£83,682|
|Max. limit on a week’s pay||£489||£508|
|Min. basic award for specific unfair dismissals||£5,970||£6,203|
Maximum basic award for unfair dismissal £15,240
Whilst the increases are minimal, and are expected each year, they serve as a reminder for employers that the consequences of “getting it wrong” when dealing with dismissals can be significant.