Increase in Industrial Tribunal Compensation Limits

23 April 2015

The new Employment Rights (Increase of Limits) Order (Northern Ireland) 2015 increases limits which an Industrial Tribunal can award for a range of employment rights

On 19th March 2015 the Department for Employment and Learning passed The Employment Rights (Increase of Limits) Order (Northern Ireland) 2015. The new legislation came into force on 22nd March 2015.

This Order increases limits which an Industrial Tribunal can award for a range of employment rights including statutory redundancy payments, the basic and compensatory awards for unfair dismissal claims and the minimum basic award for unfair dismissal in health and safety and certain other cases.

The main changes, which will be of interest to both employees and employers, are as follows:

-The maximum amount of “a week’s pay” for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal has been increased from £470 to £490.

-The limit on the amount of compensatory award for unfair dismissal has been increased from £76,600 to £78,400.

-The limit on the daily amount of statutory guarantee payment payable to an employee in respect of any day increases from £25.00 to £25.60.

The increases apply where the event giving rise to the entitlement to compensation or other payment occurs on or after 22nd March 2015.

It should be noted that the figures differ in England & Wales where effective 6th April 2015 the maximum amount of a “a week’s pay” is £475 and the limit on the amount of a compensatory award for unfair dismissal is £78,335 or 12 month’s pay.

Louise McAloon, is a Partner within the Employment Law Team at Worthingtons Solicitors, Belfast and specialises in Employment law, providing advice and representation in respect of all categories of employment claims before the Industrial and Fair Employment Tribunals and the civil courts in Northern Ireland. Should you require advice in relation to any employment dispute, please contact Louise at louise@worthingtonslaw.co.uk

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