New compensation limits – April 2021

Compensation limits

From 6 April 2021 the maximum amount for a week’s pay for the purpose of calculating a statutory redundancy payment shall increase from £538 to £544. The maximum amount for a week’s pay for the purpose of calculating the basic award for unfair dismissal will also increase from £538 to £544.

At the same time, the maximum compensatory award for unfair dismissal will increase from £88,519 to £89,493.

The key date for determining whether an increase applies is when the employment ends.

If you need any employment advice please do not hesitate to contact me on 020 3797 1264