2016 and Other Developments

The maximum Employment Tribunal compensatory award cap for an unfair dismissal will increase from £78,335 in line with the annual index linked increase. As before, the cap on the compensatory award is the lower of compensatory award cap or 52 weeks' pay (based on the claimant's gross salary prior to their dismissal but excluding pension contributions, benefits in kind and discretionary bonuses).

A "week's pay" will probably increase from £475 to a new capped amount. This is used for calculating statutory redundancy payments and Employment Tribunal basic awards.

It has been confirmed that there will be no increases in Statutory Maternity, Paternity, Adoption or Shared Parental Pay, Maternity Allowance of Statutory Sick Pay for the year 2016 - 2017.