GUIDANCE ON NEW RATES APPLICABLE TO EMPLOYMENT LAW
In April each year, at the start of a new tax year, the statutory limits on payments are reviewed and increased.
The key changes for the 2024/5 tax year are:
National Living Wage and National Minimum Wage effective from 1 April 2024:
Workers aged 21 and over - £11.44 per hour (from £10.42)
Workers aged 18-20- £8.60 per hour (from £7.49).
Workers aged 16 and 17 - £6.40 per hour (from £5.28).
Apprentices aged 19 and over, but in the first year of their apprenticeship - £6.40 per hour (from £5.28).
Other payments effective from 7 April 2024:
Statutory Sick Pay - increases to £116.75 per week (from £109.40)
Statutory Maternity Pay, Shared Parental Pay, Paternity Pay and Adoption Pay increase £184.03 per week (from £172.48)
Employment Tribunal Compensation Limits - from 6 April 2024, the main changes are:
The limit on a week’s pay (used for the purpose of calculating a redundancy payment or various awards including the basic for unfair dismissal) is increased to £700 from £643
The maximum award for unfair dismissal will increase to £115,115 from £105,707
Increases to Vento bands in discrimination cases:
Further to the increases to statutory payments, the Presidential Guidance on employment tribunal awards for injury to feelings has also been reviewed. This has resulted in increases to the Vento bands which are used when making awards in successful discrimination cases. The increases are as follows:
A lower band of £1,200 to £11,700 (increasing from £1,100 to £11,200) for less serious cases.
A middle band of £11,700 to £35,200 (increasing from £11,200 to £33,700) for cases which do not merit an award in the upper band.
An upper band of £35,200 to £58,700 (increasing from £33,700 to £56,200) for the most serious cases.
Amounts in excess of £58,700 can be awarded in the most exceptional cases.
The new bands will apply to claims presented on or after 6 April 2024.
SOURCES:
https://www.legislation.gov.uk/uksi/2024/213/made
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2024-to-2025