Economy Minister Dr today announced an
increase in the limits for payments and awards to workers in
relation to certain employment rights.
Taking effect from April 6, the limit on the compensatory award
for unfair dismissal rises from £115,341 to £118,455. Also, the
maximum amount for one week's pay for the purpose of calculating
redundancy payments rises from £729 to £749.
The increased limits relate to a range of employment rights
including:
- statutory redundancy payments;
- the basic and compensatory awards for unfair dismissal;
- the limit on guarantee payments made when employees are not
provided with work; and
- the minimum basic award for unfair dismissal in health and
safety and certain other cases.
Minister Archibald said: “One of my top priorities is
protecting the rights and entitlements of workers and employees.
This Order will ensure that people will be compensated fairly and
that their rights will be protected by law if they find
themselves in the unfortunate situation of having to receive
these types of payments or awards.”
Legislation adjusting limits relating to a range of employment
rights is made annually to reflect changes in the rate of
inflation as measured by the Retail Prices Index (RPI).
Notes to editors:
- Article 33 of the Employment Relations (Northern Ireland)
Order 1999 provides that the limits on various awards and
payments under employment legislation will be index-linked, i.e.
will be varied by Order if the Retail Prices Index (RPI) for
September of a year is higher or lower than the index of the
previous September.
- The new limits reflect changes in the RPI between September
2023 and September 2024 (2.7% - source: ONS, all items RPI).
- The Department for the Economy is legally required to make
the up-rating Order and to bring the new limits into operation on
6 April 2025. The changes being made involve no changes to the
structure of awards and other payments, or to employers'
management systems.
- The Order, which contains a table showing the increase of
limits from 6 April 2025, will be available to view online at The
Employment Rights (Increase of Limits) Order (Northern Ireland)
2025: https://www.legislation.gov.uk/nisr/2025/63
- Details of limits are also available at: https://www.nibusinessinfo.co.uk/content/new-statutory-payment-rates-2025-26
