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Statutory employment payments on the rise
Every April the rates and limits change for statutory employment payments. This includes the amounts employees receive by way of statutory sick pay, redundancy pay, maternity/paternity pay and minimum wage, as well as the maximum amounts payable following successful Employment Tribunal claims.
LCF Law's employment team, explained: “From the 1st April this year, there are annual increases across the board, including in relation to the maximum Employment Tribunal compensatory award, which this year is increasing from £89,493 to £93,878.
“However, it’s important to understand that this doesn’t mean that everyone winning a claim will automatically see an increase in the amount of any compensatory award made. The compensatory award does what it says on the tin – it compensates the employee for their losses - it is not designed to be punitive or to give the employee a windfall.
“As a result, given the current strong jobs market, particularly in skills-shortage areas, then despite the maximum award available being increased, it is entirely possible that we will see a decrease in the level of compensatory awards in Employment Tribunals if employees are more readily able to secure alternative employment.”
LCF Law’s employment team has significant expertise in dealing with Employment Tribunal claims and advising employers on the best ways to avoid them. “Win, lose or draw, Employment Tribunals can be time-consuming and expensive to defend. It therefore remains sensible to take advice to ensure that a company’s policies and procedures remain fit for purpose, and to minimise the risk of claims.”
On 1 April 2022 the following increases will take place:
| Rate | Current limit | Limit from 1 April 2022 |
| Cap on a week’s pay (for redundancy and other statutory purposes) | £544 | £571 |
| Maximum basic award/ statutory redundancy pay | £16,320 | £17,130 |
| Maximum compensatory award | £89,493 | £93,878 |
| Statutory maternity pay / shared parental leave/ adoption pay prescribed rate/ paternity pay | £151.97 | £156.66 |
| Statutory sick pay | £96.35 | £99.35 |
| National Living Wage (23 +) | £8.91 | £9.50 |
| National Minimum Wage (21-22) | £8.36 | £9.18 |
| National Minimum Wage (18-20) | £6.56 | £6.83 |
| National Minimum Wage (16-17) | £4.62 | £4.81 |
| National Minimum Wage (Apprentice rate) | £4.30 | £4.81 |
| Injury to feelings – discrimination claims | Lower band: £900 – 9,100
Middle band: £9,100 - £27,400 Upper band: £27,400 - £45,600 |
Lower band: £990 – 9,900
Middle band: £9,900 - £29,600 Upper band: £29,600 - £49,300 |
What can we do to help?
LCF Law can assist in advising on what to do when faced with the circumstances referred to above. The employment team will be more than happy to discuss your needs with you. If so, please contact James Austin on 01423 851 138 or email ku.oc1728166248.fcl@1728166248nitsu1728166248a.sem1728166248aj1728166248 for more information.