The annual increases in the limits on certain employment tribunal awards and other amounts payable under employment legislation are due to come into force on 6 April 2018.

The maximum compensatory award for unfair dismissal will increase from £80,541 to £83,682 (provided this is lower than the additional cap on the compensatory award of 52 weeks' pay).

The limit on a week's pay, which amongst other things is used to calculate statutory redundancy payments, will increase from £489 to £508.

The increased amounts will apply where the event that gives rise to the entitlement to compensation or other payment (for example the effective date of dismissal or redundancy) occurs on or after 6 April 2018. Employers considering redundancies where the termination date will be 6 April 2018 or later should factor this increased amounts in their cost projections.

For other statutory increases occurring in April, such as the national minimum wage, SSP and ‘family friendly' rates please refer to Increases to Statutory Rates.

And finally, just a reminder that there is also an increase in the minimum contributions for automatic enrolment pensions from the 6 April 2018.  This increase will see the employer's contribution increase to 2% and the employee's contribution to 3%.

Fiona Haworth. You can contact Fiona on

If you feel that you need guidance or advice on this matter, please call Practical HR on 01702 216573 or email Fiona on the above.

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