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 £118,455 to £123,785. Also, the
maximum amount for a week's pay for the purpose of calculating
redundancy payments rises from £749 to £783.
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.
The Minister said: “A key focus for me is to safeguard the
employment rights of workers and employees. This Order will make
sure that they get fair compensation and that their rights are
legally protected if they find themselves in the unfortunate
circumstance of needing to receive these kinds 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:
1. Article 33(2) of the Employment Relations (Northern Ireland)
Order 1999 provides that the limits on various payments and
awards under employment rights legislation will be index-linked,
i.e. will be revised by Order if the Retail Prices Index (RPI)
for September of a year is higher or lower than the index for the
previous September.
2. The new limits reflect changes in the RPI between September
2024 and September 2025 (4.5% - source: ONS, all items RPI).
3. The Department for the Economy has a statutory duty to make an
Order and to bring the new limits into operation on 6th April.
The changes being made involve no policy changes.
4. The Order, which contains a Schedule showing the increase of
limits from 6th April 2026, will be available to view online at
The Employment Rights (Increase of Limits) Order (Northern
Ireland) 2026 (legislation.gov.uk). Details of limits will also
be available at http://www.nibusinessinfo.co.uk
