Here are the key changes to statutory payments and limits for unfair dismissal, which are effective from April 2019. More details can be found below the table.
Maternity, Paternity, Adoption and Shared Parental Pay - effective from 7 April 2019
The current rate of Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay and Shared Parental Pay will increase from £145.18 per week to £148.68per week.
Redundancy Pay - effective from 6 April 2019
The maximum amount of “a week’s pay” for the purpose of calculating Statutory Redundancy Pay or for various awards including basic or additional awards for compensation in respect of unfair dismissal will increase from £508 per week to £525 per week. The maximum payment under the Statutory Redundancy Scheme will increase from £15,240 to £15,750(£525 x 30 weeks).
Compensatory Award for Unfair Dismissal - effective from 6 April 2019
The limit on the amount of compensatory award for unfair dismissal will increase from £83,682 to £86,444 (statutory cap).
The maximum compensatory award is the lower of the statutory cap or 52 weeks’ pay. This is 52 times one week’s actual gross pay for the employee at the time of dismissal, calculated in the usual way. The limit on a week’s pay does not apply.
Statutory Guarantee Payments - effective from 6 April 2019
During periods of lay-off or short-time working an employee may be entitled to a Statutory Guarantee Payment. The current rate of £28.00 per day will increase to £29.00 per day (subject to a maximum of five days or £145 in any three months).
Statutory Sick Pay - effective from 6 April 2019
The rate of Statutory Sick Pay (SSP) will increase from £92.05 per week to £94.25per week.
The lower earnings threshold will increase from £116 per week to £118 per week.
National Living Wage/National Minimum Wage
The new rates for the National Living Wage and National Minimum Wage come into force from 1 April 2019:
All the above changes come into force in April 2019 and are reviewed annually.
If you have any queries in relation to the new rates/limits, please do not hesitate to contact the Alcumus PSM HR Consultancy team on [email protected].
Alcumus PSM (People & Safety Management) specialises in human resources (HR) and health and safety (H&S) consulting for small and medium-sized enterprises.
Written by Marie-Clare Swallow, Senior HR Consultant