Annual increases to statutory compensation limits
The Employment Rights (Increase of Limits) Order 2025 will revise the compensation limits for certain tribunal awards and other statutory payments from 6 April 2025. What are the increases?
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Free childcare for company owners?
You’re an owner manager and your daughter is due to start nursery. You understand that working parents can get free childcare but a friend said this isn’t available if you only pay yourself dividends. Is this true and what can you do to qualify?
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CT61
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Getting the NI on benefits right
Getting the National Insurance (NI) treatment of employee benefits wrong remains a common issue for employers, particularly where the benefits are payrolled. Errors can lead to underpaid NI and potential compliance action. What should you check?
The Employment Rights (Increase of Limits) Order 2025 will increase the maximum amount of a “week’s pay” from £700 to £719 from 6 April 2025. A “week’s pay” is used to calculate statutory redundancy payments, payments to employees in the event of insolvency and various awards including the unfair dismissal basic and additional awards. Other key increases are:
- the maximum compensatory award for unfair dismissal will rise from £115,115 to £118,223 (there is an additional cap of one year’s salary on the unfair dismissal compensatory award)
- the limit on the daily amount of statutory guarantee pay will rise from £38 to £39
- the minimum basic award for certain unfair dismissals, such as dismissals for reasons of trade union membership or activities, health and safety duties or acting as an employee representative or workforce representative, will rise from £8,533 to £8,763.
The increases apply where the event giving rise to the entitlement to compensation or other payment occurs on or after 6 April 2025. In unfair dismissal claims, that date is the effective date of termination of employment. The limits previously in force will still apply where the effective date of termination was before 6 April 2025.





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