Statutory redundancy pay to increase from 6 April 2017






The maximum amount of statutory redundancy pay and the limit on the amount employment tribunals can award for unfair dismissal increases from 6th April 2017.



Employers that dismiss through redundancy must pay those with two years’ service an amount based on their weekly pay, length of service and age. From 6 April 2017, this is £489, increasing from £479 and the top award of statutory redundancy pay also increases to £14,670 from £14,370. The maximum statutory redundancy payment increases every year in line with the retail prices index.



The maximum compensatory award for unfair dismissal is also increasing to £80,541 from the current £78,962. The rise in the unfair dismissal award applies where the effective date of termination is on or after 6 April 2017. These increases are among a number of adjustments to awards that employment tribunals can make and payments that employers must make.




The new rates are set out in the Employment Rights (Increase of Limits) Order 2017, which comes into force on 6 April 2017.




FOR advice regarding your companies HR practices, please contact HPC on this website or through our social media channels.

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