New compensation limits in force from April 2015

The Employment Rights (Increase of Limits) Order 2015 has announced an increase to compensation limits for a range of employment claims. The rise will be in line with current inflation.

New limits

• The compensation limit for unfair dismissal will rise from £76,574 to £78,335 (or a sum equivalent to 12 months pay-whichever is lower).
• The compensation limit for a weeks pay will rise from £464 to £475.

When the new limits come into force?

The new limits will apply to a cause of action occurring on or after 6th April 2015. For example if an employee is unfairly dismissed on the 5th April 2015 the old rates will apply.