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NLW and increase to statutory payment limits

BY Heather Maclean
Employment Law & HR
BG Purple

Next month will see a raft of changes to statutory payments come into effect.

Chief among them is the introduction of the new National Living Wage regime, which will replace the existing National Minimum wage scheme. This will bring the minimum hourly rate for adult workers over age 25 to £7.20 per hour. Other changes to statutory payments include:

- The maximum week’s pay for the purposes of redundancy payments or unfair dismissal basic awards will be £479 (previously £475);
- The maximum compensatory award for unfair dismissal claims will be £78,962 (previously £78,335); and
- The maximum basic award for certain unfair dismissal claims will be £14,370 (previously £14,250).

This will affect redundancies and unfair dismissal claims where the effective date of termination falls on or after 6th April 2015.

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