Every April, the government updates employment- related financial limits. Below are the new rates:
From 6 April 2024, the following maximum compensation limits are going up:
- The limit on a week’s pay will increase to £700 from its current rate of £643 (used to calculate statutory redundancy and other payments)
- The maximum statutory redundancy payment will increase to £21,000 (service is capped at 20 years’ service)
- The maximum basic award for unfair dismissal will increase to £21,000 and the maximum compensatory award for unfair dismissal will increase to £115,115 (this only applies for dismissals that take effect from 6 April 2024)
From April 2024, there will also be increases in the statutory amount employees receive if they are off work due to sickness or where they are taking family related leave:
- From 6 April, statutory sick pay will increase to a weekly payment of £116.75
- From 7 April 2024 the statutory rates for maternity, paternity, shared parental, adoption and parental bereavement pay will increase to a weekly payment of £184.03
- From 8 April, maternity allowance will increase to £184.03
There are some hefty wage increases employers will need to factor in for low paid staff. From 1 April 2024:
- The National Living Wage will apply to workers aged 21 and over and the rate is increasing to £11.44 an hour from £10.42
- Those aged between 18-20 will receive £8.60 an hour from £7.49
- 16 and 17 year olds will receive £6.40 an hour from £5.28
- Apprentices under the age of 19 or in their first year £6.40 an hour, from £5.28
- Accommodation offset increases to £9.99 per day, from £9.10
Employees who carry out domestic work whilst living with their employer will, for the first time, become entitled to the appropriate NMW for their age.
Employers must pay these increased rates starting from the worker’s next pay reference period after the raise.
Source: Lexology
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
