Increase in a week’s pay
Annual uprating of limits
The Employment Rights (Increase of Limits) Order 2020 (SI 2020/205) (see Follow up ) will come into force on 6 April 2020. From that date, the maximum amount of a “week’s pay” , which is used to calculate both statutory redundancy payments and the unfair dismissal basic and additional awards, will increase from £525 to £538. In addition, the maximum unfair dismissal compensatory award will increase from £86,444 to £88,519 (or one year’s gross pay if that’s lower). Finally, the limit on the daily amount of statutory guarantee pay, which is paid to employees in the event of lay-offs or short time working, will rise from £29 to £30.
Pro advice. The increases apply where the event giving rise to the entitlement to payment occurs on or after 6 April 2020.