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Statutory Rates and Compensation Limits For 2017/18 Announced

New Statutory Rates and Compensation Limits

During the first week of April 2017 new rates of certain statutory payments and upper and lower limits on employment tribunal awards shall come into effect.

Previously frozen in April 2016 due to a fall in the consumer price index (CPI) in the year to September 2015, the rates have been increased this April following a 1% increase in the CPI in the year to September 2016.

Statutory Payments for Time Off Work

From 2 April:

  • Maternity/adoption pay prescribed rate (max) will be £140.98, up from £139.58
  • Paternity pay (max) will be £140.98, up from £139.58
  • Shared parental pay (max) will be £140.98, up from £139.58

From 6 April:

  • Statutory sick pay (SSP) will be £89.35, up from £88.45
  • The lower earnings limit LEL) will be £113, up from £112.  The LEL is the level an employee's average earnings must be equal to or greater than to be entitled to these statutory payments.

Compensation Limits

  • Week’s pay will be £489, up from £479
  • Statutory redundancy payment: up to 30 weeks’ pay will be £14,670, up from £14,370
  • Unfair dismissal basic award: up to 30 weeks’ pay will be £14,670, up from £14,370
  • Unfair dismissal compensatory award will be £80,541, up from £78,962. The maximum compensatory award is lower of statutory limit or 52 weeks’ actual gross pay at the time of dismissal. Limit does not apply where reason for dismissal or redundancy selection is carrying out health and safety activities or making a protected disclosure.
  • Automatically unfair dismissal basic award (min) will be £5,970, up from £5,853.
  • Blacklisted employee unfair dismissal basic award (min) will be unchanged and remain at £5,000
  • Failure to reinstate or re-engage: 26 to 52 weeks’ pay will be £12,714 to £25,428, up from £12,454 to £24,908
  • Breach of right to be accompanied: up to 2 weeks’ pay will be £978, up from £958
  • Breach of flexible working regulations: up to 8 weeks’ pay will be £3,912, up from £3,832
  • Failure to give written particulars of employment: 2 or 4 weeks’ pay will be £978 or £1,956, up from £958 or £1,916
  • Breach of contract claim in employment tribunal will be unchanged and remains at £25,000
  • Failure to inform or consult: collective redundancy will be unchanged and remains at 90 days’ pay. (actual gross pay - limit on a week’s pay does not apply)
  • Failure to inform or consult: TUPE transfer will be unchanged and remains at 13 weeks’ pay  (actual gross pay - limit on a week’s pay does not apply)
  • Guarantee payment (each day) will be £27, up from £26
  • Guarantee payment (in any 3 months) will be £135, up from £130

How Can You Avoid Getting Caught Out?

If you are unsure about how these changes to employment law might affect your business, or simply want to check your company's compliance generally, Contact Us and we will undertake full review of your current arrangements and provide you with our findings and recommendations.




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