new compensation limits…and a new time of year for the uplift

money In a little heralded employment law development, the date for the annual change to tribunal compensation limits has shifted from February to April each year, and the Statutory Instrument announcing the new limits has been issued: Employment Rights (Increase of Limits) Order 2014.

Here are the main changes (effective 6 April 2014).

The new maximum compensatory award for unfair dismissal increases to £76,574 from £74,200(an increase of £2374).

The maximum week’s pay, used for calculating redundancy payments and basic unfair dismissal awards, increases from £450 to £464.

Statutory maternity pay, ordinary and additional paternity pay and statutory adoption rates increase from £136.78 to £138.18.

In addition, employment tribunals will have the right to increase compensatory awards by up to 50% if there are “one or more aggravating features”.

It is also worth noting that the Percentage Threshold Scheme which allowed employers to recover SSP from HMRC is ending. Recoveries could be made where the cost to the employer exceeded 13% of its Class 1 NICs in a single month. However there is to be a new helpline advice service, along with a new state-funded employee health scheme from later this year.

Martin Malone

By Martin Malone

I'm a solicitor and the chief operating officer at Canter Levin & Berg. I was formerly head of the employment department.
I maintain this website so if you have any suggestions, criticisms or recommendations please email me at
Outside work my interests include national hunt horse racing, France and French wine and current affairs. I also design and maintain websites.