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Employment Rates and Limits – updates from April 2024

Employment Rates and Limits – updates from April 2024

Employment Rates and Limits – updates from April 2024

In April each year employment related payments / awards are generally increased. For this year, the following key changes have been announced.

Employment Tribunal

The Employment Rights (Increase of Limits) Order 2024, which sets out the annual increases to the awards in the Employment Tribunal, has just been published. The increases are based on the September 2023 retail prices index which increased by 8.9% since the previous year.

From 6 April 2024, the following increases take effect for dismissals on or after 6 April 2024:

Compensatory Award

The maximum compensatory award for unfair dismissal has increased from £105,707 to £115,115.

The basic award and redundancy payments

The cap for a week’s pay has increased from £643 to £700 per week.

Injury to feelings

The levels of compensation for injury to feelings for emotional suffering resulting from the treatment an employee has been subjected to is considered separately from any claim for financial loss such as loss of earnings.

Tribunals ultimately have discretion as to what amount of compensation to award, but there is guidance when determining awards using Vento bands. These bands are reviewed annually and adjusted to take into account of the Retail Prices Index (RPI) changes published in March each year. The current rates for 2024/2025 are as follows:

  • A lower band of £1,200 to £11,700 (increasing from £1,100 to £11,200) for less serious cases.
  • A middle band of £11,700 to £35,200 (increasing from £11,200 to £33,700) for cases which do not merit an award in the upper band.
  • An upper band of £35,200 to £58,700 (increasing from £33,700 to £56,200) for the most serious cases.
  • Amounts in excess of £58,700 can be awarded in the most exceptional cases.

The new bands apply to claims presented on or after 6 April 2024.

Other changes include:

The National Minimum Wage increased as follows on 1 April 2024

  • Age 21 or over (NLW rate): £11.44
  • Age 18 to 20: £8.60
  • Age 16 to 17: £6.40
  • Apprentice rate: £6.40
  • Accommodation offset amount: £9.99

Statutory Sick Pay increased from £109.40 to £116.75 per week on 6 April 2024.

Statutory maternity, paternity, shared parental and adoption pay increased from £172.48 to £184.03 on 7 April 2024.

If you need any assistance with an employment matter, please contact Jo Cullen, Head of Employment on 020 8475 7401 or Josephine.Cullen@edslaw.co.uk

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