mfg Blog

News and Events

Annual Compensation Limit Increase

  • Posted


The Employment Rights (Increase of Limits) Order 2016 (SI 2016/288) (the Order) and will come into force on 6th April 2016.

In cases involving dismissal, the new figures will apply where the effective date of termination (  falls on or after 6 April 2016.

Article 4 of the Order preserves the limits in force under the Employment Rights (Increase of Limits) Order 2015 (SI 2015/226) in relation to cases where the effective date of termination falls before 6 April 2015.

Compensation limitCurrent figureFrom 6 April 2016
Maximum compensatory award for unfair dismissal£78,335£78,962
Maximum limit on a week’s pay£475£479
Minimum basic award for certain unfair dismissals (dismissals for reasons of trade union membership or activities, health and safety duties, pension scheme trustee duties or acting as an employee representative or workforce representative)£5,807£5,853

Employers who have queries regarding the above should contact Sally Morris at or on 01905 734032.