Employment Contracts

by Kate Russell

Statutory rates

April 2017

Compensation limits

Note that these rates change regularly and you should confirm them with HMRC (www.hmrc.gov.uk).

Employment right

Maximum award

Unfair dismissal Applies to dismissal where the effective date of termination fell on or after 6 April 2017
Basic award £14,670
Compensatory award £80,541 (a)
Additional award £12,714 – £25,428
(in other words: 26 to 52 weeks pay)
Redundancy pay £14,670
Limit on a week’s gross pay £489
Discrimination (Sex, race, disability, sexual orientation, religion) No limit
Dismissal for union/ employee representative reasons  
Basic award £14,670 minimum £5,970
Compensatory award £80,541
Dismissal for making a protected disclosure  
Basic award £14,670
Compensatory award No limit
Contract claims in tribunal £25,000
Guarantee pay £27.00 per day
(five days in any period of three months)

(a) Or one year’s salary where dismissal takes place after 29th July 2013.

 

Parental payments from April 2017

Type of payment Current rate Maximum period
Statutory maternity pay
(higher rate)
90% of normal weekly earnings 6 weeks
Statutory maternity pay
(lower rate)*
£140.98 a week or 90% of normal weekly earnings if lower 33 weeks
Statutory paternity pay* £140.98 a week or 90% of normal weekly earnings if lower 2 weeks
Statutory adoption pay* £140.98 a week or 90% of normal weekly earnings if lower 39 weeks
Statutory shared parental pay* £140.98 a week or 90% of normal weekly earnings if lower 39 weeks

*In respect of babies or children adopted on or after 1st April 2015.

Sickness payments

Type of payment Current rate Maximum period
Statutory sick pay £89.35 a week 28 weeks in any 3 years

Lower earnings limit

Type of payment Current rate Maximum period
Lower earnings limit £113.00 n/a

National minimum wage from April 2017

Type of payment Current rate Old rate
Workers aged 25+ £7.50 £7.20
Workers aged 21 to 24 £7.05 £6.95
Development rate Workers aged 18-20 and those aged 21 and over doing accredited training in the first six months of employment £5.60 £5.55
Workers aged 16 and 17 £4.05 £4.00
Apprentices aged under 19 (or over 19 and in the first year of their apprenticeship) £3.50 £3.40