25/03/2025

The Department for the Economy has confirmed the annual adjustment to limits for unfair dismissal and redundancy payments applying in Northern Ireland.

The Employment Rights (Increase of Limits) Order (Northern Ireland) 2025 will come into effect on 6 April 2025 aligning with similar changes in Great Britain.

Northern Ireland-Specific Figures

Notably, the updated Northern Ireland figures remain slightly higher than those in Great Britain.

The revised limits are as follows:

• Compensatory Award for Unfair Dismissal: Increasing from £115,341 to £118,455 (compared to £118,223 in GB).

• Maximum Amount of a Week’s Pay: Rising from £729 to £749 (compared to £719 in GB).

• Statutory Guarantee Payments: Rising from £38 to £39 (same rate as GB)

These changes apply to cases where the “appropriate date” falls on or after 6 April 2025. For example, where an employee’s dismissal becomes effective on or after this date.

The new limits are designed to reflect changes in the Retail Prices Index (RPI) between September 2023 and September 2024, which recorded a 2.7% increase (source: Office for National Statistics, all items RPI).

Employers should take note of these updated limits and adjust their calculations for redundancy payments and potential unfair dismissal claims that fall on or after 6 April 2025.