The Employment Rights (Increase of Limits) Order 2018 comes into force on 6 April 2018.

The limit on a week’s pay for calculating a statutory redundancy payment and for various other statutory purposes (e.g. unfair dismissal basic awards) is increased to £508 and the statutory cap on a compensatory award for ordinary unfair dismissal increases to £83,682.

The increased limits apply where the event giving rise to the entitlement to compensation or other payment occurs on or after 6th April 2018. Limits previously in force under the Employment Rights (Increase of Limits) Order 2017 are preserved where the relevant event is before 6th April 2018.

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