The annual increase of limits order has been published. This Order increases, from 6th April 2021, the limits applying to certain awards of industrial tribunals, the Fair Employment Tribunal or Labour Relations Agency statutory arbitration, and other amounts payable under employment legislation, as specified in the Schedule to the Order.
Under Article 33(2) of the Employment Relations (Northern Ireland) Order 1999 (“the 1999 Order”), if the retail prices index (RPI) for September of a year is higher (or lower) than the index for the previous September, the Department is required to change, by Order, the sums specified in the provisions mentioned in Article 33(1) by the percentage of the increase or decrease (rounded up or down as specified in Article 33(3) of the 1999 Order). The increases made by this Order reflect the increase in the RPI of 1.1% from September 2019 to September 2020.
The increases apply where the event giving rise to the entitlement to compensation or other payments occurs on or after 6th April 2021. Article 2 of the Order revokes the Employment Rights (Increase of Limits) Order (Northern Ireland) 2020 (S.R. 2020 No. 42) (“the 2020 Order”). Article 4 of the Order preserves the sums previously in operation under the 2020 Order in relation to cases where the relevant event was before 6th April 2021.
The increases are set out in the table below.
Relevant Statutory Provision | Subject of Provision | 2019 Rate
| 2020 Rate | 2021 Rate |
Article 40(6) of the 1995 Order | Minimum amount of compensation awarded by the industrial tribunal where individual expelled from union in contravention of Article 38 of the 1995 Order and where, when the application is made, the applicant has not been re-admitted to the union. | £9,982 | £10,222 | £10,334 |
Article 23(1) of the 1996 Order | Maximum amount of “a week’s pay” for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal. | £547 | £560 | £566 |
Article 153 (1) of the 1996 Order | Limit on maximum amount of basic award of compensation in ‘normal’ unfair dismissals and statutory redundancy payments are therefore increased from…. | £16,410 | £16,800 | £16,980 |
Article 63(1) of the 1996 Order | Limit on amount of guarantee payment payable to an employee in respect of any day. | £29.00 | £30.00 | £30.00 |
Article 77E(3) of the 1996 Order | Amount of award for unlawful inducement relating to union membership or activities, or for unlawful inducement relating to collective bargaining. | £4,401 | £4,507 | £4,557 |
Article 154(1) of the 1996 Order | Minimum amount of basic award of compensation where dismissal is unfair by virtue of Article 132(1)(a) and (b), 132A(1)(d)(1), 133(1), 134 or 136(1) of the 1996 Order. | £6,655 | £6,815 | £6,890 |
Article 158(1) of the 1996 Order | Limit on amount of compensatory award for unfair dismissal. | £86,614 | £88,693 | £89,669 |
Article 231(1) of the 1996 Order | Limit on amount in respect of any one week payable to an employee in respect of debt to which Part XIV of the 1996 Order applies and which is referable to a period of time. | £547 | £560 | £566 |
Full order available here:
https://www.legislation.gov.uk/nisr/2021/73/contents/made
Continue reading
We help hundreds of people like you understand how the latest changes in employment law impact your business.
Please log in to view the full article.
What you'll get:
- Help understand the ramifications of each important case from NI, GB and Europe
- Ensure your organisation's policies and procedures are fully compliant with NI law
- 24/7 access to all the content in the Legal Island Vault for research case law and HR issues
- Receive free preliminary advice on workplace issues from the employment team
Already a subscriber? Log in now or start a free trial
