Employment Law Update: new statutory rates and limits from 6 April 2025

The Employment Rights (Increase of Limits) Order 2025 brings the following changes on 6 April 2025:

• Redundancy: the weekly cap on statutory redundancy payments will increase from £700 to £719.

• Compensatory awards: the limit on compensatory awards for unfair dismissal will rise from £115,115 to £118,223 (if one year’s salary is higher than the limit).

• Guarantee pay: statutory guarantee pay will increase from £38 to £39 per day.

Additionally, the Social Security Benefits Up-rating Order 2025 will increase the rate of payment for various statutory leave entitlements from 6 April 2025. The changes include:

• Increases to statutory maternity and statutory adoption pay (after the first six weeks), statutory paternity pay, statutory shared parental pay, statutory parental bereavement pay from £184.03 to £187.18 per week or 90% of the employee’s average weekly earnings, whichever is lower
• Statutory sick pay will rise from £116.75 to £118.75 per week

If you would like to discuss these new changes, please do get in touch with our Employment Team on 020 8290 0440 (Bromley) or 01732 496 496 (Sevenoaks) or employment@thackraywilliams.com.