Minister Archibald announces annual 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 £115,341 to £118,455. Also, the maximum amount for one week’s pay for the purpose of calculating redundancy payments rises from £729 to £749.
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.
Minister Archibald said:
“One of my top priorities is protecting the rights and entitlements of workers and employees. This Order will ensure that people will be compensated fairly and that their rights will be protected by law if they find themselves in the unfortunate situation of having to receive these types 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 of the Employment Relations (Northern Ireland) Order 1999 provides that the limits on various awards and payments under employment legislation will be index-linked, i.e. will be varied by Order if the Retail Prices Index (RPI) for September of a year is higher or lower than the index of the previous September.
2. The new limits reflect changes in the RPI between September 2023 and September 2024 (2.7% - source: ONS, all items RPI).
3. The Department for the Economy is legally required to make the up-rating Order and to bring the new limits into operation on 6 April 2025. The changes being made involve no changes to the structure of awards and other payments, or to employers’ management systems.
4. The Order, which contains a table showing the increase of limits from 6 April 2025, will be available to view online at The Employment Rights (Increase of Limits) Order (Northern Ireland) 2025.
Details of limits are also available on nibusinessinfo.
5. Printed copies of the Rule may be purchased from The Stationery Office (TSO) or by contacting TSO Customer Services on 0333 202 5070.
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