Increase in UK Employment Protection Awards

By and on March 13, 2014
Posted In Employment
The compensation limits on Employment Tribunal awards and certain other amounts payable under UK employment legislation will increase as of 6 April 2014. The key changes are set out below.


What Does This Mean for Employers
?

The changes will take effect on 6 April 2014 and will be applicable to dismissals taking effect on or after that date.

It is important for employers to note that:

  • If an employee is given notice prior to 6 April 2014, but the notice period will expire on or after 6 April 2014, the new limits set out above will apply to that dismissal.
  • If an employee’s employment is terminated by means of a payment in lieu of notice, the effective date of termination (EDT) is the actual date the dismissal takes effect, plus the amount of statutory notice applicable to the employee, i.e., one week per year of employment, up to a maximum of 12 weeks. If the statutory notice would take the EDT to or beyond 6 April 2014, the new limits will apply.

Employers’ exposure in the event of an unfair dismissal claim will rise and should therefore be factored into decision making regarding litigation or settlement strategies.

Katie ClarkKatie Clark
Katie Clark has significant experience advising on all aspects of contentious and non-contentious employment matters. Katie’s client base spans multiple business sectors and includes global corporations, financial institutions, FTSE 100 companies, manufacturing companies, service providers and start-ups. Katie is noted for her commercial approach to assisting clients to deal with employment issues ranging from day-to-day employee relations, to negotiating public limited company (PLC) board director contracts and significant business restructuring. Read Katie Clark's full bio.


Paul McGrathPaul McGrath
Paul McGrath advises clients across a broad range of industry sectors in all areas of contentious and non-contentious UK employment law. His practice covers all aspects of UK employment legislation and day-to-day employment matters, including appointments and terminations, employment status and worker classification issues, employee handbooks and policies, employee data privacy, disciplinary and grievance issues, and restructuring and redundancy exercises. Read Paul McGrath's full bio.

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