Minister announces increase in limits for unfair dismissal and redundancy payments
Date published:
Economy Minister Dr Caoimhe Archibald today announced an increase in the limits for payments and awards to workers in relation to certain employment rights.
Taking effect from April 6, the limit on the compensatory award for unfair dismissal rises from £118,455 to £123,785. Also, the maximum amount for a week’s pay for the purpose of calculating redundancy payments rises from £749 to £783.
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.
The Minister said: “A key focus for me is to safeguard the employment rights of workers and employees. This Order will make sure that they get fair compensation and that their rights are legally protected if they find themselves in the unfortunate circumstance of needing to receive these kinds of payments or awards.”
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).
Notes to editors:
1. Article 33(2) of the Employment Relations (Northern Ireland) Order 1999 provides that the limits on various payments and awards under employment rights legislation will be index-linked, i.e. will be revised by Order if the Retail Prices Index (RPI) for September of a year is higher or lower than the index for the previous September.
2. The new limits reflect changes in the RPI between September 2024 and September 2025 (4.5% - source: ONS, all items RPI).
3. The Department for the Economy has a statutory duty to make an Order and to bring the new limits into operation on 6th April. The changes being made involve no policy changes.
4. The Order, which contains a Schedule showing the increase of limits from 6th April 2026, will be available to view online at The Employment Rights (Increase of Limits) Order (Northern Ireland) 2026 (legislation.gov.uk). Details of limits will also be available at on the nibusinessinfo website.
5. Printed copies of the Order may be purchased from The Stationery Office (TSO) or by contacting TSO Customer Services on 0333 202 5070.
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