Changes to the Employment Law Payment Awards are effective from 06 April 2016.
Section 34 of the Employment Relations Act 1999 provides for an increase or decrease in the following statutory limits each year according to the year-on-year change in the Retail Price Index (RPI) at the previous September. The Enterprise and Regulatory Reform Act 2013 changed the implementation date for statutory limits from 01 February to 06 April for England, Wales and Scotland, as well as making changes to the way in which they are rounded.
The Employment Rights (Increase of Limits) Order 2016 provided the statutory framework to apply the increases below from 06 April 2016. These are calculated according to the statutory formulae, based on the increase in the RPI of 0.8% in the year to September 2015.
The new rate was effective in each case from the ‘appropriate date’ defined in the legislation. For example: The daily guarantee payment limit (£26.00) applies only to days for which the payment is due that fell on or after 06 April 2016 The maximum weekly statutory redundancy rate (£479) applies only where the ‘appropriate date’ for the redundancy fell on or after 06 April 2016