24/03/2026
Economy Minister Announces Increase in Employment Rights Payment Limits
Economy Minister Dr Caoimhe Archibald has announced an upward adjustment to the limits for payments and awards made to workers regarding specific employment rights.
The changes, which are scheduled to take effect from 6 April, will see the maximum compensatory award for unfair dismissal increase from £118,455 to £123,785. Furthermore, the cap on a "week's pay" used for calculating statutory redundancy payments will rise from £749 to £783.
These revised limits apply to several key employment protections, including:
• Statutory redundancy payments
• Basic and compensatory awards for unfair dismissal
• The limit on guarantee payments provided when employees are not given work
• The minimum basic award for unfair dismissal in health and safety and other specific cases
Minister Archibald 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."
The adjustments are made annually through legislation to ensure that employment rights payments remain in line with the rate of inflation, as measured by the Retail Prices Index (RPI).
The changes, which are scheduled to take effect from 6 April, will see the maximum compensatory award for unfair dismissal increase from £118,455 to £123,785. Furthermore, the cap on a "week's pay" used for calculating statutory redundancy payments will rise from £749 to £783.
These revised limits apply to several key employment protections, including:
• Statutory redundancy payments
• Basic and compensatory awards for unfair dismissal
• The minimum basic award for unfair dismissal in health and safety and other specific cases
Minister Archibald 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."
The adjustments are made annually through legislation to ensure that employment rights payments remain in line with the rate of inflation, as measured by the Retail Prices Index (RPI).
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