BIS has announced the yearly increase in a statutory weeks pay taking effect from 6th April 2016 shall be a raise from £475 to £479.
This has the effect of increasing statutory redundancy pay calculations and the maximum sum payable for statutory redundancy pay.
It also has the effect of increasing the maximum award for (capped) unfair dismissal to £78,962 from the current £78,335 for dismissals where the effective date of termination is after 6th April 2016.
The weekly pay is subject to a maximum amount. From 6 April 2016, this is £479, increasing from £475. This means that the top award of statutory redundancy pay also increases from £14,250 to £14,370. The maximum statutory redundancy payment increases every year in line with the retail prices index. Bar Huberman, employment law editor at XpertHR says: “Employers must factor in this increase when considering any redundancies, as it could have a significant impact on the amount they will need to pay out if they are making large-scale redundancies. The maximum compensatory award for unfair dismissal is also increasing to £78,962 from the current £78,335. The new rates are set out in the Employment Rights (Increase of Limits) Order 2016, which comes into force on 6 April 2016.