The Economy Committee is currently considering the draft Employment Rights (Increase of Limits) Order (Northern Ireland) 2026.

This is the routine annual Order that updates statutory limits in key areas such as a week’s pay, redundancy payments and unfair dismissal awards.

While Northern Ireland has historically mirrored the increases applied in Great Britain, NI continues to use a different rounding method, meaning the NI figures are slightly higher.

Below is a summary of the updated limits proposed for Northern Ireland; the equivalent GB provisions have not yet been published.

INCREASE STATUTORY LIMITS (NORTHERN IRELAND)

■ Maximum amount of a “Week’s Pay”
Used for calculating statutory redundancy payments and the basic or additional award for unfair dismissal.

2025/26: £749
2026/27: £783
(GB 2025 was £719; 2026 yet to be published)

■ Limit on the Compensatory Award for Unfair Dismissal

2025/26: £118,455
2026/27: £123,785
(GB 2025 was £118,223; 2026 yet to be published)

■ Maximum Basic Award for Unfair Dismissals

2025/26: £22,470
2026/27: £23,490

(GB 2025 was £21,570; 2026 yet to be published)

■Limit on Guarantee Pay (per day)

2025/26: £39
2026/27: £41

(GB 2025 was £39; 2026 yet to be published but likely to be same as NI)

REMOVAL OF THE UNFAIR DISMISSAL CAP IN GB

Although this change does not apply in Northern Ireland, employers operating across the UK should note that in Great Britain, the statutory cap on unfair dismissal compensation, currently £118k or one year’s pay (whichever is lower) will be removed from 1 January 2027.

This change will significantly increase the potential exposure for GB‑based claims and is likely to reshape the types of cases brought before Employment Tribunals. We can expect to see higher‑value claims progressing in GB, particularly from higher‑paid executives or individuals with generous pension arrangements. Removing the cap opens the door for claims that previously would have been limited by statutory ceilings, meaning employers will need to be even more mindful of process, documentation and risk management.