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New limits for unfair dismissal and redundancy payments announced

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Payments and awards made to workers in employment rights cases are to rise in line with inflation.

An Order made by the Department for Employment and Learning brings these new limits into operation from 14 February 2016.

Minister for Employment and Learning Dr Stephen Farry said: “The increased limits relate to a range of employment rights including statutory redundancy payments; the basic and compensatory awards for unfair dismissal; the limit on guarantee payments made when employees are not provided with work; and the minimum basic award for unfair dismissal in health and safety and certain other cases.

“For example, the limit on the compensatory award for unfair dismissal is raised from £78,400 to £79,100 while the maximum amount of ‘a week’s pay’ for the purpose of calculating redundancy payment rises from £490 to £500.”

Legislation adjusting limits relating to a range of employment rights is made annually to reflect changes in the rate of inflation as measured by the Retail Prices Index (RPI).

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