News article

New limits for unfair dismissal and redundancy payments from 6 April 2019

2 April 2019

Payments and awards made to workers in employment rights cases are to rise in line with inflation with effect from 6 April 2019

The increased limits, announced by the Department for the Economy (DfE), relate to a range of employment rights including:

  • statutory redundancy payments;
  • the basic and compensatory awards for unfair dismissal;
  • the limit on guarantee payments made when employees are not provided with work; and
  • the minimum basic award for unfair dismissal in health and safety and certain other cases.

The limit on the compensatory award for unfair dismissal rises from £83,847 to £86,614 while the maximum amount of ‘a week’s pay’ for the purpose of calculating redundancy payment rises from £530 to £547.

Legislation adjusting limits relating to a range of employment rights is made annually to reflect changes in the rate of inflation as measured by the Retail Prices Index (RPI). The figures are different to those in Great Britain.

See redundancy: the options.