Award increases and other changes


The Employment Rights (Increase of Limits) Order 2018 comes into force on 8 April 2018, introducing annual increases to limits on Employment Tribunal awards. For example, the maximum compensatory award for unfair dismissal rises from £80,541 to £83,682 and the maximum “week’s pay” in relation to redundancy payments and unfair dismissal basic award rises from £489 to £508.


New rules for the taxation of termination payments come into force on 6 April 2018. These changes relate to the £30,000 tax-free threshold and payments in lieu of notice. 


The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 will come into force next year on 6 April 2019, introducing the requirement that where pay varies depending on hours worked, the payslip sets out the number of paid hours. This a victory for unions who campaigned on this issue. 


www.legislation.gov.uk/uksi/2018/194/pdfs/uksi_20180194_en.pdf