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UK Employment Rate and Compensation Increases Now in Effect

In case you have been distracted by other recent events in the UK, here is a reminder that the compensation limits on Employment Tribunal awards and certain other amounts payable under UK employment legislation increased as of the first week of April 2019.

This alert sets out the changes in full and highlights important consequences for employers.

IN DEPTH


Key Points for Employers

The changes relating to redundancy and unfair dismissal payments, as set out in the table below, took effect on 6 April 2019, and will apply to dismissals occurring on or after that date.

It is important for employers to note:

  • If an employee was given notice prior to 6 April 2019, but the notice period expires on or after 6 April, the new limits will apply.
  • 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, 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 2019, the new limits will apply.

Itemised Payslips

Employers should also be aware that, with effect from 6 April 2019, the right to receive a written, itemised pay statement extended to include ‘workers’ as well as ‘employees’. ‘Workers’ includes agency workers and zero hours workers.

 

© 2019 McDermott Will & Emery

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About this Author

Katie Clark, McDermott WIll Emery Law Firm, Labor employment attorney
Partner

Katie Clark is a partner in the law firm of McDermott Will & Emery UK LLP, based in its London office.  Her practice focuses on contentious and non-contentious employment matters. 

Katie is recognised as a leader in her field in Chambers UK 2011.  She is described as a “recognised force for her advocacy and commercial employment advice”, Chambers UK 2010 and as “very knowledgeable, superbly responsive, and no-nonsense…” Legal 500 UK 2011.

Her clients include global corporations, financial institutions, FTSE 100 companies, manufacturing companies...

+44 20 7577 3492