From 06 April 2017 the limit on a gross week’s pay is increasing from £479 to £489. Amongst other things this will impact on employers looking to calculate Statutory Redundancy Payments for higher earners.

For a simple online Statutory Redundancy Payment calculator see: https://www.gov.uk/calculate-your-redundancy-pay

The increase in the limit on a week’s pay also means that the cap on the basic award for an unfair dismissal claim has increased from £14,370 to £14,670. This, combined with an increase in the cap on the compensatory award to £80,541, means that if a higher earner brings an unfair dismissal claim your potential exposure as an employer has never been so great.

The limits may change from time to time but what remains constant is that when dismissing an employee – whether it is because of conduct, capability (poor performance or ill-health), redundancy or “some other substantial reason” – employers must act in accordance with the principles of fairness established by the courts over the years.

For more information please do not hesitate to contact our experienced Employment team for a free and confidential discussion on 01924 387 110


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