18/03/2025

Great Britain Employment Rights: Increase in Limits (14 March 2025)

In Great Britain, The Employment Rights (Increase of Limits) Order 2025 (No. 348) was laid before Parliament on 14 March 2025 and comes into effect on 6 April 2025. This sets out the level of annual increases to awards and amounts

Increases from 6 April 2025:

The Order confirms that from 6 April 2025:

• Week’s Pay: Rises from £700 to £
• Compensatory Award* Increases from £115,115 to £118,223*. 

(In GB, the compensatory award  is capped at the lower of either this upper limit or one year’s salary. In contrast, Northern Ireland only applies the statutory cap of  the upper limit and has no corresponding  one-year salary cap.)

• Guarantee Pay: A modest increase from £38 to £39 per day.

These new rates apply to events, such as dismissals, dismissals, occurring on or after 6 April 2025.

Updates for Northern Ireland

Northern Ireland has yet to publish its updated rates. Companies maybe aware that the rates in Northern Ireland  historically  differ to those in GB due to a different rounding method. For example, in comparison in 2024, Northern Ireland’s limits include:

• Compensatory Award: £115,341 (2024 rate).
• Week’s Pay Limit: £729 (2024 rate).

It is expected that any new rates for NI will also take effect from 6 April 2025. We will notify Members when the new rates are published.