The Government has announced that from 6 April 2021, the maximum amount of a “week’s pay” will increase from £538 to £544. A “week’s pay” is used to calculate such things as statutory redundancy payments, payments to employees in the event of insolvency and various awards including the unfair dismissal basic and additional awards.
Other key increases are:
- the maximum compensatory award for unfair dismissal will rise from £88,519 to £89,493
- the minimum basic award for certain unfair dismissals, such as dismissals for reasons of trade union membership or activities, health and safety duties or acting as an employee representative or workforce representative, will go up from £6,562 to £6,634
However, the limit on the daily amount of statutory guarantee pay will remain at £30. This payment is used to pay employees for the first 5 workless days if you lay them off work.