The Employment Rights (Increase of Limits) Order 2015 SI 2015/226 has now been made and will increase the compensation limits and minimum awards that apply to a range of employment claims. Among other things, the Order raises the limit on compensation for unfair dismissal from £76,574 to £78,335 and the limit on a week’s pay from £464 to £475.
The increases are in line with the RPI measure of inflation as at September 2014, which was 2.3%, as required under S.34 of the Employment Relations Act 1999. The new rates take effect where the ‘appropriate date’ for the cause of action (such as the date of termination in an unfair dismissal claim) falls on or after 6 April 2015. This is the second year in which the increases take effect in April – before 2014, the annual increases were applied in February.