Current rates and limits for employment lawyers

The current rates and limits of certain statutory payments and employment tribunal awards.

For previously applied rates and limits, see Checklist, Historical rates and limits for employment lawyers.

For a one-page "at a glance" document containing key rates and limits, click  Download PDF in the Actions box in the top right corner of this page.

Practical Law Employment
Contents

Contracts of employment

Breach of contract

Employment tribunals have jurisdiction to hear some claims for breach of contract that either arise or are in existence on the termination of employment. The limit on such claims is £25,000 (article 10, Employment Tribunals Extension of Jurisdiction (England and Wales) Order 1994 (SI 1994/1623) and article 10, Employment Tribunals Extension of Jurisdiction (Scotland) Order 1994 (SI 1994/1624)). This is an aggregate upper limit so, if several claims are made relating to the same contract, the total amount recoverable from the employer remains capped at £25,000.

For more information on breach of contract claims in the tribunal, see Practice note, Employment tribunals (06): contract claims and counterclaims (www.practicallaw.com/8-376-4459).

Failure to give statement of particulars of employment

Under section 1 of the Employment Rights Act 1996 (ERA 1996), employers must provide employees whose employment is to continue for more than one month with a written statement of certain terms of their employment. If there is any change to any of the required statutory particulars of employment, the employer must give the employee a written statement containing details of the change at the earliest opportunity and, in any event, no later than one month after the change (section 4, ERA 1996). See Standard document, Section 1 statement of terms of employment (www.practicallaw.com/2-200-2039) for a template statement of terms.

An employee can only claim for a breach of these rights where they also have a successful substantive claim of a type specified in Schedule 5 to the Employment Act 2002 (EA 2002) (which includes, for example, claims for inducements relating to union membership or activities and collective bargaining, unfair dismissal, unlawful deductions from wages and breach of contract). Where one of the claims specified in Schedule 5 is successful, and at the time the claim was brought the employer was in breach of their duties under sections 1 or 4 of the ERA 1996, the tribunal must make an award equivalent to two weeks' pay. Alternatively, if the tribunal considers it is just and equitable to do so, it can make an award equivalent to four weeks' pay (section 38, EA 2002). In the case of either award, the amount is subject to the statutory limit on a week's pay (www.practicallaw.com/9-200-3634) (for which, see Week's pay).

 

Limit on two weeks' pay

Limit on four weeks' pay

6 April 2014 - 5 April 2015

£928

£1,856

1 February 2013 - 5 April 2014

£900

£1,800

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Failure to give statement of particulars of employment (www.practicallaw.com/5-504-5920).

 

Discipline and grievances

Breach of right to be accompanied

A worker may bring a claim that their employer failed, or threatened to fail, to comply with the worker's right to be accompanied to a disciplinary or grievance hearing. An employment tribunal can award a maximum of two weeks' pay if the claim succeeds (section 11(3), Employment Relations Act 1999), subject to the statutory limit on a week's pay (www.practicallaw.com/9-200-3634) (for which, see Week's pay). There is no minimum award.

For more information on the right to be accompanied at a disciplinary hearing, see Practice note, Conducting a disciplinary investigation and hearing: Right to be accompanied (www.practicallaw.com/8-200-2423).

 

Maximum

6 April 2014 - 5 April 2015

£928

1 February 2013 - 5 April 2014

£900

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Breach of right to be accompanied (www.practicallaw.com/5-504-5920).

 

Employment tribunals

Employment tribunal issue and hearing fees

From 29 July 2013, claimants must present an "issue fee" when they submit their claim to the tribunal, followed by a "hearing fee" before the full tribunal hearing. The amount of the fee will depend on the type of claim. More straightforward claims are allocated to the "Type A" category. All other claims are "Type B" claims.

Where more than one claimant is bringing the same claim, the fee structure takes into account the number of claimants who are bringing the claim (see Fee groups).

For more information on fees in the employment tribunals, see Practice note, Employment tribunals (03): fees and remissions (www.practicallaw.com/5-523-6854).

Single claimant claims

Fee type

Type A claims

Type B claims

Issue fee

£160

£250

Hearing fee

£230

£950

Fee groups

Type A claims

Fee type

Number of claimants

 

Two to ten

11 to 200

201 or more

Issue fee

£320

£640

£960

Hearing fee

£460

£920

£1,380

Type B claims

Fee type

Number of claimants

 

Two to ten

11 to 200

201 or more

Issue fee

£500

£1,000

£1,500

Hearing fee

£1,900

£3,800

£5,700

Employment tribunal application fees

Certain types of application to the tribunal attract fees.

Application type

Type A claims

Type B claims

Reconsideration of default judgment*

£100

£100

Reconsideration of judgment following final hearing*

£100

£350

Dismissal following withdrawal of claim*

£60

£60

Employer's contract claim

£160

N/A

Judicial mediation**

£600

£600

* Payable by the party making the application.

** Payable by the respondent.

 

Employment appeals

EAT issue and hearing fees

From 29 July 2013, appellants in employment cases must pay an issue fee once they have submitted their appeal to the EAT (www.practicallaw.com/7-200-3201), followed by a hearing fee before the EAT hearing. For more information, see Practice note, Employment tribunals (03): fees and remissions: Fees in the EAT (www.practicallaw.com/5-523-6854).

Fee type

Fee

Issue fee

£400

Hearing fee

£1,200

 

Flexible working

Breach of flexible working regulations

Employees with at least 26 weeks' continuous employment can make a request for flexible working (www.practicallaw.com/5-200-3235). The employee can complain to an employment tribunal if the employer does any of the following:

  • Fails to deal with their application in a reasonable manner.

  • Fails to notify them of the decision on their application within the decision period.

  • Fails to rely on one of the statutory grounds when refusing their application.

  • Bases its decision on incorrect facts.

  • Treats the application as withdrawn when the grounds entitling the employer to do so do not apply.

If the complaint is upheld, the tribunal must make a declaration to that effect and may make either or both of:

  • An order for reconsideration of the request.

  • A compensatory award to be paid by the employer to the employee, of such amount as the tribunal considers just and equitable, up to the statutory maximum of eight weeks' pay (regulation 6, Flexible Working Regulations 2014 (SI 2014/1398)). The award is subject to the statutory limit on a week's pay (www.practicallaw.com/9-200-3634) (for which, see Week's pay). There is no minimum award.

For more information, see Practice note, Flexible working: the right to request flexible working from 30 June 2014 (www.practicallaw.com/0-566-2476).

 

Maximum

6 April 2014 - 5 April 2015

£3,712

1 February 2013 - 5 April 2014

£3,600

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Breach of flexible working regulations (www.practicallaw.com/5-504-5920).

 

Insolvency

The National Insurance Fund (NIF) guarantees a basic minimum payment of specific debts owed to employees by their insolvent employers, provided certain conditions are met. (Anything not covered by NIF must be claimed in the insolvency and therefore only a small percentage is likely to be recovered, if anything.) The maximum limits on debts in relation to arrears of pay, statutory notice pay, holiday pay, basic awards and statutory redundancy payments are set out below.

For more information, see Practice note, Overview of the employment aspects of insolvency: National Insurance Fund (www.practicallaw.com/5-382-4105).

Arrears of pay

Employees can claim up to a maximum limit of eight weeks' arrears of pay from the National Insurance Fund (section 184(1)(a), Employment Rights Act 1996). This is capped at the statutory limit on a week's pay (section 186, ERA 1996: see Week's pay), and is then subject to tax and NICs (www.practicallaw.com/8-201-8297).

Arrears of pay is not limited to unpaid wages. It also includes:

(Section 184(2), ERA 1996.)

If more than one of the above types of payment are claimed the cap applies to the aggregated sum. For example, if the employee is owed six weeks' wages plus a protective award of 90 days' pay, the NIF will only cover a total of eight weeks' pay capped at the statutory rate.

 

Maximum

6 April 2014 - 5 April 2015

£3,712

1 February 2013 - 5 April 2014

£3,600

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Insolvency: Arrears of pay (www.practicallaw.com/5-504-5920).

Statutory notice pay

An employee can recover a debt in relation to statutory notice pay (irrespective of the length of their contractual notice) from the National Insurance Fund (section 184(1)(b), Employment Rights Act 1996). The maximum statutory minimum notice period (www.practicallaw.com/9-200-3511) is 12 weeks and is subject to the current maximum statutory limit on a week's pay (www.practicallaw.com/9-200-3634) (see Week's pay).

 

Maximum

6 April 2014 - 5 April 2015

£5,568

1 February 2013 - 5 April 2014

£5,400

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Insolvency: Statutory notice pay (www.practicallaw.com/5-504-5920).

Holiday pay

An employee can recover a debt in relation to holiday pay from the National Insurance Fund, subject to a maximum of six weeks' pay (section 184(1)(c), Employment Rights Act 1996). One week's pay is subject to the current maximum statutory limit on a week's pay (www.practicallaw.com/9-200-3634) (see Week's pay).

 

Maximum

6 April 2014 - 5 April 2015

£2,784

1 February 2013 - 5 April 2014

£2,700

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Insolvency: Holiday pay (www.practicallaw.com/5-504-5920).

Basic award or statutory redundancy pay

An employee can recover a debt in relation to a basic award (www.practicallaw.com/9-200-3035) (section 184(1)(d), Employment Rights Act 1996), subject to the current maximum limit on the basic award (see Basic award).

Where the whole or part of a statutory redundancy payment (www.practicallaw.com/3-200-3608) remains unpaid, the employee can claim the outstanding payment from the National Insurance Fund (section 166(1), Employment Rights Act 1996). The amount of the payment will be subject to the current limit on statutory redundancy payments (see Statutory redundancy payment). For more information, see Practice note, Redundancy (4): statutory redundancy payments: National Insurance Fund: employers who are insolvent or refuse to pay (www.practicallaw.com/7-383-2722).

 

Interest (employment tribunals)

Discrimination cases

Provision for payment of interest on discrimination awards is set down in the Employment Tribunals (Interest on Awards in Discrimination Cases) Regulations 1996 (SI 1996/2803). These give tribunals the power to award interest on the claimant's losses as part of the compensation for discrimination. For more information, see Practice note, Discrimination in employment: compensation and other remedies (EqA 2010): Interest (www.practicallaw.com/9-502-4614).

  • For injury to feelings awards, interest runs from the date of the discriminatory act to the date of calculation.

  • For other awards, including past financial losses, the interest runs from the "mid-point" date to the date of calculation (regulation 6(1)(b), Employment Tribunals (Interest on Awards in Discrimination Cases) Regulations 1996). The mid-point is calculated as the date halfway between the discriminatory act and ending on the calculation date (usually the judgment date).

  • Interest accrues from day to day, and is simple rather than compound (regulation 3, Employment Tribunals (Interest on Awards in Discrimination Cases) Regulations 1996). The rate payable depends to some degree on when and where the case was presented.

 

Rate of interest (England and Wales)

From 29 July 2013

8%

1 July 2009 - 28 July 2013

0.5%

For the rates that applied in England and Wales before 1 July 2009, see Checklist, Historical rates and limits for employment lawyers: Discrimination cases: Interest on claimant's losses up to judgment (www.practicallaw.com/5-504-5920).

In Scotland, regulation 3(2) provides that the interest accrues at the rate prescribed from time to time by the Act of Sederunt (Interest on Sheriff Court Decrees or Extracts) 1975, which sets the rate applicable to judgments of the Sheriff Courts under section 9 of the Sheriff Courts (Scotland) Extracts Act 1892. The current figure under section 9 is 8% each year, set by the Act of Sederunt (Interest on Sheriff Court Decrees or Extracts) 1993.

Unpaid tribunal awards

An employment tribunal has no power to award interest as a remedy in its own right. However, specific provision is made for interest to accrue on any award of compensation which remains unpaid. Before the Employment Tribunal Rules of Procedure 2013 came into force on 29 July 2013, interest accrued on an unpaid tribunal award only after 42 days. This has now changed. From 29 July 2013, interest on a tribunal award is payable from the day after the relevant decision day, unless the full amount is paid within 14 days after the decision day.

The current rate of interest is that contained in section 17 of the Judgments Act 1838 (article 4, Employment Tribunals (Interest) Order 1990 (SI 1990/479)). Since 1 April 1993 this rate has been 8% each year.

For more information, see Practice note, Employment tribunals (25): enforcement: Interest (www.practicallaw.com/0-523-6856).

 

Maternity, paternity and adoption

Statutory maternity pay

Statutory maternity pay (www.practicallaw.com/1-200-3510) (SMP) is payable at two different rates:

(Section 166, Social Security Contributions and Benefits Act 1992.)

For more information, see Practice note, Maternity pay and benefits (www.practicallaw.com/9-244-6976).

 

SMP: earnings-related rate

Maximum period

From 6 April 2014

90% of employee's weekly earnings

Six weeks

7 April 2013 - 5 April 2014

90% of employee's weekly earnings

Six weeks

 

SMP: prescribed rate (each week)

Maximum period

From 6 April 2014

£138.18

33 weeks

7 April 2013 - 5 April 2014

£136.78

33 weeks

For the rates that applied before 7 April 2013, see Checklist, Historical rates and limits for employment lawyers: Statutory maternity pay (www.practicallaw.com/5-504-5920).

Statutory paternity pay

Statutory paternity pay (www.practicallaw.com/8-200-3941) (SPP) is payable for up to two weeks at the prescribed rate (see table below), or at the earnings-related rate (90% of the employee's normal weekly earnings), whichever is lower (section 171ZE, Social Security Contributions and Benefits Act 1992). The prescribed rate of SPP is contained in regulation 2 of the Statutory Paternity Pay and Statutory Adoption Pay (Weekly Rates) Regulations 2002 (SI 2002/2818) and is revised annually. The current rate was prescribed by the Social Security Benefits Up-rating Order 2014 (SI 2014/516).

For more information, see Practice note, Paternity pay (www.practicallaw.com/0-501-9612).

 

SPP: prescribed rate (each week)

Maximum period

From 6 April 2014

£138.18

Two weeks ordinary paternity leave; 26 weeks additional paternity leave

7 April 2013 - 5 April 2014

£136.78

Two weeks ordinary paternity leave; 26 weeks additional paternity leave

For the rates that applied before 7 April 2013, see Checklist, Historical rates and limits for employment lawyers: Statutory paternity pay (www.practicallaw.com/5-504-5920).

Statutory adoption pay

Statutory adoption pay (www.practicallaw.com/8-200-3502) (SAP) is payable for up to 39 weeks at the prescribed rate (see table below), or at the earnings-related rate (90% of the employee's normal weekly earnings), whichever is lower (section 171ZN, Social Security Contributions and Benefits Act 1992). Unlike SMP (www.practicallaw.com/1-200-3510), SAP is paid at the same rate for the full period. The prescribed rate of SAP is contained in regulation 3 of the Statutory Paternity Pay and Statutory Adoption Pay (Weekly Rates) Regulations 2002 (SI 2002/2818) and is revised annually. The current rate was prescribed by the Social Security Benefits Up-rating Order 2014 (SI 2014/516).

For more information, see Practice note, Adoption leave and pay (www.practicallaw.com/3-500-2530).

 

SAP: prescribed rate (each week)

Maximum period

From 6 April 2014

£138.18

39 weeks

7 April 2013 - 5 April 2014

£136.78

39 weeks

For the rates that applied before 7 April 2013, see Checklist, Historical rates and limits for employment lawyers: Statutory adoption pay (www.practicallaw.com/5-504-5920).

Maternity allowance

Maternity allowance (www.practicallaw.com/5-200-3358) is payable for up to 39 weeks to women who are not entitled to SMP (www.practicallaw.com/1-200-3510) because they are either low-paid or self-employed. The individual is entitled to the lower of the prescribed rate of maternity allowance (see table below) or 90% of their normal weekly earnings. The prescribed weekly rate of maternity allowance is contained in section 35A of the Social Security Contributions and Benefits Act 1992 and is revised annually. The current rate was prescribed by the Social Security Benefits Up-rating Order 2014 (SI 2014/516).

 

Maternity allowance (each week)

Maximum period

From 7 April 2014

£138.18

39 weeks

8 April 2013 - 6 April 2014

£136.78

39 weeks

For the rates that applied before 8 April 2013, see Checklist, Historical rates and limits for employment lawyers: Maternity allowance (www.practicallaw.com/5-504-5920).

Small employers' relief

Employers with Class 1 NIC (www.practicallaw.com/8-201-8297) liability below a specified threshold for the tax year qualify for small employers' relief. They are entitled to recover 100% of their SMP (www.practicallaw.com/1-200-3510), SPP (www.practicallaw.com/8-200-3941) and SAP (www.practicallaw.com/8-200-3502), plus an additional compensatory amount, which relates to NICs payable on that SMP, SPP or SAP (see Statutory Maternity Pay (Compensation of Employers) and Miscellaneous Amendment Regulations 1994 (SI 1994/1882) and Statutory Paternity Pay and Statutory Adoption Pay (Administration) Regulations 2002 (SI 2002/2820)).

For more information, see Practice notes, Maternity pay and benefits (www.practicallaw.com/9-244-6976), Paternity pay (www.practicallaw.com/0-501-9612) and Adoption leave and pay (www.practicallaw.com/3-500-2530).

 

Annual threshold

Percentage rate of compensatory amount

From 6 April 2011

£45,000

3%

6 April 2004 - 5 April 2011

£45,000

4.5%

For the thresholds and percentage rates that applied before 6 April 2004, see Checklist, Historical rates and limits for employment lawyers: Small employers' relief (www.practicallaw.com/5-504-5920).

 

National minimum wage

There are different rates of national minimum wage (www.practicallaw.com/4-200-3368) (NMW) for four categories of worker:

  • Standard adult rate. This rate applies to workers aged 21 or over (there is no upper age limit) (National Minimum Wage Act 1998).

  • Development rate. This rate applies to workers aged between 18 and 20 inclusive (regulation 13(1), National Minimum Wage Regulations 1999 (SI 1999/584) (NMWR 1999)).

  • Young workers rate. This rate applies to workers aged under 18 but above the compulsory school age (www.practicallaw.com/9-386-0356) who are not apprentices (regulation 13(2), NMWR 1999).

  • Apprenticeship rate. This rate applies to apprentices under 19 years of age or those aged 19 and over but in the first year of their apprenticeship (regulation 13(3), NMWR 1999).

If an employer provides a worker with free accommodation, some of its value can be counted towards NMW pay (regulation 36, NMWR 1999). This is the "accommodation offset". An employer cannot offset more than the accommodation offset limit.

These figures are reviewed each year, following recommendations by the Low Pay Commission (www.practicallaw.com/7-200-3357). The current figures were prescribed by the The National Minimum Wage (Amendment) Regulations 2013 (SI 2013/1975).

For more information, see Practice note, National minimum wage (www.practicallaw.com/1-200-2959).

 

Standard adult rate (minimum hourly rate)

Development rate (minimum hourly rate)

Young workers rate (minimum hourly rate)

Apprenticeship rate (minimum hourly rate)

Accommodation offset limit (maximum daily deduction from NMW)

1 October 2014 - 30 September 2015

£6.50

£5.13

£3.79

£2.73

£5.08

1 October 2013 - 30 September 2014

£6.31

£5.03

£3.72

£2.68

£4.91

1 October 2012 - 30 September 2013

£6.19

£4.98

£3.68

£2.65

£4.82

For the rates that applied before 1 October 2012, see Checklist, Historical rates and limits for employment lawyers: National minimum wage (www.practicallaw.com/5-504-5920).

 

Pensions

Annual allowance

The annual allowance (www.practicallaw.com/6-201-6478) is the maximum amount of contributions a member may make to any registered pension scheme (www.practicallaw.com/5-201-6474), or the increase in the value of a member's benefits, in a given year. A tax charge will arise on additional contributions or benefits to the extent they exceed the annual allowance.

Tax year

Annual allowance

2014-15

£40,000

2013-14

£50,000

For the limits that applied before tax year 2013-14, see Checklist, Historical rates and limits for employment lawyers: Pensions: Annual allowance (www.practicallaw.com/5-504-5920).

Lifetime allowance

The standard lifetime allowance (www.practicallaw.com/8-201-6477) is the total amount of pension savings within a registered pension scheme (www.practicallaw.com/5-201-6474) that receive favourable tax treatment. Funds over the lifetime allowance may be held within a registered scheme, but tax charges will arise on the excess.

Tax year

Lifetime allowance

2014-15

£1,250,000

2013-14

£1,500,000

For the limits that applied before tax year 2013-14, see Checklist, Historical rates and limits for employment lawyers: Pensions: Lifetime allowance (www.practicallaw.com/5-504-5920).

 

Redundancy

Statutory redundancy payment

Employees who are made redundant and have two years' continuous employment are entitled to a statutory redundancy payment (www.practicallaw.com/3-200-3608). The amount of the payment is calculated in the same way as the basic award (www.practicallaw.com/9-200-3035) for unfair dismissal (www.practicallaw.com/0-200-3624), according to a formula based on the employee's age, length of service and week's pay (section 162, Employment Rights Act 1996). There is no minimum payment. For the statutory limits on a week's pay (www.practicallaw.com/9-200-3634), see Week's pay.

For more information on statutory redundancy payments, see Practice note, Redundancy (4): statutory redundancy payments (www.practicallaw.com/7-383-2722).

 

Maximum

6 April 2014 - 5 April 2015

£13,920

1 February 2013 - 5 April 2014

£13,500

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Statutory redundancy payment (www.practicallaw.com/5-504-5920).

Guarantee payment

During periods of lay-off or short-time working an employee may be entitled to a statutory guarantee payment, which is calculated by multiplying the number of normal working hours on the workless day by the guaranteed hourly rate. For more information, see Practice note, Redundancy (6): lay-off and short-time working (www.practicallaw.com/0-383-2725).

Statutory guarantee payments are subject to a maximum daily limit which is prescribed annually (section 31(1), Employment Rights Act 1996). There is no minimum payment. The current limit was prescribed by the Employment Rights (Increase of Limits) Order 2014 (SI 2014/382).

 

Maximum

6 April 2014 - 5 April 2015

£25 a day (subject to a maximum of five days or £125 in any three months)

1 February 2013 - 5 April 2014

£24.20 a day (subject to a maximum of five days or £121 in any three months)

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Guarantee payment (www.practicallaw.com/5-504-5920).

Failure to inform or consult over collective redundancy

The maximum protective award which can be awarded for a failure to inform or consult over a collective redundancy is 90 days' gross pay per dismissed employee (section 188, Trade Union and Labour Relations (Consolidation) Act 1992). The statutory limit on a week's pay (www.practicallaw.com/9-200-3634) does not apply and there is no minimum award.

For more information, see Practice note, Redundancy (8): collective consultation (www.practicallaw.com/2-200-2987).

 

Sickness

Statutory sick pay

The statutory sick pay (www.practicallaw.com/1-200-3609) (SSP) scheme, set out in Part XI of the Social Security Contributions and Benefits Act 1992, entitles qualifying employees who have been absent from work for four or more consecutive days to receive a minimum weekly payment. Employees are entitled to up to 28 weeks' SSP in any period of incapacity for work.

The rate of SSP is contained in section 157 of the Social Security Contributions and Benefits Act 1992. The current rate was prescribed by the Social Security Benefits Up-rating Order 2014 (SI 2014/516).

For more information on the SSP scheme, see Practice note, Sick pay: Statutory sick pay.

Sick days between

SSP rate (each week)

6 April 2014 - 5 April 2015

£87.55

6 April 2013 - 5 April 2014

£86.70

For the rates that applied before 6 April 2013, see Checklist, Historical rates and limits for employment lawyers: Statutory sick pay (www.practicallaw.com/5-504-5920).

 

Tax and NICs

Income tax: personal allowances

Not all income is taxable and an individual is only taxed on "taxable income" to the extent it exceeds the individual's income tax personal allowance (www.practicallaw.com/2-382-5644) for the tax year (www.practicallaw.com/2-107-7375). There are other reliefs and allowances that can apply to reduce the amount of income tax payable.

Tax year

Personal allowance for people aged under 65

Personal allowance for people aged 65-74

Personal allowance for people aged 75 and over

Income limit for age-related allowances

Married couple's allowance for people born before 6 April 1935 (maximum)

Married couple's allowance for people born before 6 April 1935 (minimum)

Blind person's allowance

2014-15

£10,000

£10,500

£10,660

£27,000

£8,165

£3,140

£2,230

2013-14

£9,440

£10,500

£10,660

£26,100

£7,915

£3,040

£2,160

The personal allowance is reduced for individuals with adjusted net income (as defined in section 58 of the Income Tax Act 2007 (ITA 2007)) over £100,000. The reduction is £1 for every £2 over £100,000 until the allowance is reduced to nil. This reduction applies regardless of date of birth (section 35, ITA 2007).

For more detailed information about income tax personal allowances, see Practice note, Tax rates and limits: Income tax: Allowances (www.practicallaw.com/6-201-2606).

For the limits that applied before tax year 2013-14, see Checklist, Historical rates and limits for employment lawyers: Income tax: personal allowances (www.practicallaw.com/5-504-5920).

Income tax: taxable bands

The taxable bands apply after any personal allowances (see Income tax: personal allowances).

Tax year

Basic rate (20%)

Higher rate (40%)

Additional rate (45%*)

2014-15

£0-£31,865

£31,866-£150,000

Over £150,000

2013-14

£0-£32,010

£32,011-£150,000

Over £150,000

For the rates that applied before tax year 2013-14, see Checklist, Historical rates and limits for employment lawyers: Income tax: Taxable bands (www.practicallaw.com/5-504-5920).

* The additional rate of income tax decreased from 50% to 45% in tax year 2013-14.

National Insurance contributions

NICs (www.practicallaw.com/8-201-8297) are payable to HMRC (www.practicallaw.com/6-200-6399) by employees, their employers, and by self-employed workers. The amount of NIC payable is determined by multiplying the earnings or profits (plus certain non-cash benefits) of the employee or self-employed person by the relevant percentage or fixed rate. The rate will depend on the "class" (for NIC purposes) of the person and the level of earnings or profits. NIC is typically not payable below a prescribed earnings or profits lower limit, and is payable at a reduced rate, beyond a prescribed earnings or profits upper limit.

Tax year

Lower earnings limit (www.practicallaw.com/2-205-6579) (each week)

Primary threshold (www.practicallaw.com/1-205-6589) (each week)

Secondary threshold (each week)

Upper earnings limit (www.practicallaw.com/2-205-6584) (each week)

Upper accrual point (www.practicallaw.com/4-386-4390) (each week)

Employees' rate (primary class 1 contributions) (each week)

Employers' rate (secondary class 1 contributions) above secondary threshold (each week)

2014-15

£111

£153

£153

£805

£770

12% of earnings between £153 and £805

2% of earnings above £805

13.8%

2013-14

£109

£149

£148

£797

£770

12% of earnings between £149 and £797

2% of earnings above £797

13.8%

For the limits that applied before tax year 2013-14, see Checklist, Historical rates and limits for employment lawyers: National Insurance contributions (www.practicallaw.com/5-504-5920).

 

Trade unions

Refusal of employment on union membership grounds

It is unlawful to refuse to employ a person because they are a member (or are not a member) of a trade union, or because they refuse to join or leave a trade union. It is also unlawful for an agency to refuse employment services on those grounds.

An employment tribunal can award compensation "on the same basis as damages for breach of statutory duty", and this may include compensation for injury to feelings, as well as financial loss (section 140(1)(a) and 2, Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA)). There is an upper limit equal to that of the compensatory award (www.practicallaw.com/9-200-3101) in unfair dismissal cases (section 140(4), TULRCA) (see Compensatory award). There is no minimum award. For more information, see Practice note, Blacklisting of trade unionists: Refusal of employment on union membership grounds (TULRCA) (www.practicallaw.com/3-504-3979).

 

Maximum

6 April 2014 - 5 April 2015

£76,574

1 February 2013 - 5 April 2014

£74,200

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Refusal of employment on union membership grounds (www.practicallaw.com/5-504-5920).

Inducements relating to union activities or collective bargaining

An employer must not make any offer to an employee to induce them to give up (or take up) union membership, or to give up union activities, services or collective bargaining (sections 145A and 145B, Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA)). An employment tribunal must make a mandatory award where a claim is upheld. The amount of this mandatory award is prescribed annually (section 145E, TULRCA). The current mandatory award was prescribed by the Employment Rights (Increase of Limits) Order 2014 (SI 2014/382).

 

Mandatory award

6 April 2014 - 5 April 2015

£3,715

1 February 2013 - 5 April 2014

£3,600

For the mandatory awards that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Inducements relating to union activities or collective bargaining (www.practicallaw.com/5-504-5920).

Consultation with union on training

Where the Central Arbitration Committee (www.practicallaw.com/3-200-2449) specifies a method of collective bargaining (www.practicallaw.com/7-107-5939), an employer must consult union representatives periodically on its policy, actions and plans for training members of the bargaining unit (www.practicallaw.com/0-520-5237). If it does not, the union may bring a complaint against the employer in an employment tribunal and the tribunal may award a maximum of two weeks' pay to each person who was a member of the bargaining unit (section 70C, Trade Union and Labour Relations (Consolidation) Act 1992), subject to the statutory limit on a week's pay (www.practicallaw.com/9-200-3634) (for which, see Week's pay). There is no minimum award.

For more information on collective bargaining, see Practice note, Trade union recognition (4): deciding the bargaining arrangements (www.practicallaw.com/1-382-9586).

 

Maximum

6 April 2014 - 5 April 2015

£928

1 February 2013 - 5 April 2014

£900

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Consultation with union on training (www.practicallaw.com/5-504-5920).

Unjustifiable discipline by a union

Where an individual has been unjustifiably disciplined by a trade union, they can bring a complaint against the union in an employment tribunal. There is no minimum award. The maximum amount of compensation which the tribunal can award is the aggregate of the basic award (www.practicallaw.com/9-200-3035) and the compensatory award (www.practicallaw.com/9-200-3101) for unfair dismissal purposes (section 67(8), Trade Union and Labour Relations (Consolidation) Act 1992). For statutory limits on the basic and compensatory awards, see Basic award and Compensatory award.

 

Maximum

6 April 2014 - 5 April 2015

£90,494

1 February 2013 - 5 April 2014

£87,700

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Unjustifiable discipline by a union (www.practicallaw.com/5-504-5920).

Exclusion or expulsion from a union

Where an individual is unlawfully excluded or expelled from a trade union, they can bring a complaint against the union in an employment tribunal. Where the claim is upheld, the tribunal must award a minimum amount of compensation (section 176(6A), Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA)). This amount is prescribed annually and the current figure was prescribed by the Employment Rights (Increase of Limits) Order 2014 (SI 2014/382).

The maximum amount of compensation which can be awarded is the aggregate of the basic award (www.practicallaw.com/9-200-3035) and the compensatory award (www.practicallaw.com/9-200-3101) for unfair dismissal (www.practicallaw.com/0-200-3624) purposes (section 176(6B), TULRCA). For statutory limits on the basic and compensatory awards, see Basic award and Compensatory award.

 

Minimum

Maximum

6 April 2014 - 5 April 2015

£8,669

£90,494

1 February 2013 - 5 April 2014

£8,400

£87,700

For the minimum and maximum awards which applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Exclusion or expulsion from a union (www.practicallaw.com/5-504-5920).

 

Transfer of undertakings

Failure to inform or consult over a TUPE transfer

The maximum amount of compensation which can be awarded for a failure to inform or consult over a TUPE (www.practicallaw.com/8-107-7424) transfer is 13 weeks' gross pay (regulation 16(3), TUPE 2006). The statutory limit on a week's pay (www.practicallaw.com/9-200-3634) does not apply and there is no minimum award.

For more information, see Practice note, TUPE (6): obligations to inform and consult (www.practicallaw.com/5-380-7945).

 

Unfair dismissal

An employment tribunal may award compensation for unfair dismissal (www.practicallaw.com/0-200-3624). This will usually consist of a basic award (www.practicallaw.com/9-200-3035) and a compensatory award (www.practicallaw.com/9-200-3101). An additional award (www.practicallaw.com/2-200-3005) may also be awarded if an employer fails to comply with a reinstatement or re-engagement order. For more detailed information on compensation for unfair dismissal, see Practice note, Unfair dismissal: compensation and remedies (www.practicallaw.com/5-386-1008).

Basic award

The basic award for unfair dismissal is calculated according to a formula based on the employee's age, length of service and weekly pay (section 119, Employment Rights Act 1996). The maximum that can be awarded under the formula is 30 weeks' pay and the employee's weekly pay is subject to the statutory limit on a week's pay (www.practicallaw.com/9-200-3634) (see Week's pay). There is no minimum award, except for in certain automatically unfair dismissal cases: see Minimum basic award for certain automatically unfair dismissals.

For more information on calculating the basic award, see Practice note, Unfair dismissal: compensation and remedies: Basic award (www.practicallaw.com/5-386-1008).

 

Maximum

6 April 2014 - 5 April 2015

£13,920

1 February 2013 - 5 April 2014

£13,500

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Basic award (www.practicallaw.com/5-504-5920).

Minimum basic award for certain automatically unfair dismissals

Some automatically unfair dismissals (www.practicallaw.com/4-200-3033) attract a minimum basic award, which is prescribed annually (section 120(1), Employment Rights Act 1996, (ERA 1996) and section 156, Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA)). The current minimum award was prescribed by the Employment Rights (Increase of Limits) Order 2014 (SI 2014/382).

Such cases are where the principal reason for dismissal is for:

The maximum basic award is the same as in other unfair dismissal cases (see Basic award).

 

Minimum

Maximum

6 April 2014 - 5 April 2015

£5,676

£13,920

1 February 2013 - 5 April 2014

£5,500

£13,500

For the minimum and maximum awards that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Minimum basic award for certain automatically unfair dismissals (www.practicallaw.com/5-504-5920).

Compensatory award

Statutory cap

The compensatory award in the vast majority of unfair dismissal cases is subject to a statutory upper limit or "cap", which is prescribed annually (section 124(1), Employment Rights Act 1996). The current statutory limit was prescribed by the Employment Rights (Increase of Limits) Order 2014 (SI 2014/382).

It is the effective date of termination (www.practicallaw.com/8-200-3192) (EDT) of employment which determines the applicable limit. For example, the limit on the compensatory award for an unfair dismissal where the EDT falls between 1 February 2013 and 5 April 2014 inclusive will be £74,200 (see table below).

For more information, see Practice note, Unfair dismissal: compensation and remedies: Compensatory award (www.practicallaw.com/5-386-1008).

 

Statutory cap

6 April 2014 - 5 April 2015

£76,574

1 February 2013 - 5 April 2014

£74,200

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Compensatory award (www.practicallaw.com/5-504-5920).

The statutory cap does not apply where the reason for the dismissal was that the claimant:

Dismissals on or before 28 July 2013

Where the employee's EDT is on or before 28 July 2013, it is simply the numerical statutory cap that applies to the unfair dismissal compensatory award. For more information on this limit, see Statutory cap.

Reduction of statutory cap on 29 July 2013

After 29 July 2013, a more complex formula for calculating the cap has applied. The maximum compensatory award is the lower of the statutory cap (see Statutory cap) or 52 weeks' pay. This is 52 times one week's actual gross pay for the employee at the time of dismissal, calculated in the usual way under sections 220-229 of ERA 1996, although the limit on a week's pay under section 227 of ERA 1996 does not apply.

The change was made by the Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013 (SI/2013/1949), under a new power allowing the government to reduce the statutory cap, introduced by section 15 of the Enterprise and Regulatory Reform Act 2013 (see Enterprise and Regulatory Reform Act 2013: employment law provisions: Unfair dismissal compensatory award limit (www.practicallaw.com/4-519-7283)).

The new cap will apply where the employee's EDT is on or after 29 July 2013.

Additional award

An employment tribunal may order that an additional award be paid in unfair dismissal cases if an employer does not comply with a reinstatement order (www.practicallaw.com/9-200-3441) or re-engagement order (www.practicallaw.com/1-200-3440). The minimum and maximum amounts which can be ordered are calculated with reference to a week's pay (www.practicallaw.com/9-200-3634), subject to statutory limits (for which, see Week's pay).

The minimum order will be the lower of 26 weeks' pay or the amount in the Minimum column in the table below, while the maximum order will be the lower of 52 weeks' pay or the amount in the Maximum column below.

 

Minimum

Maximum

6 April 2014 - 5 April 2015

£12,064

£24,128

1 February 2013 - 5 April 2014

£11,700

£23,400

For the minimum and maximum awards that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Additional award (www.practicallaw.com/5-504-5920).

 

Week's pay

The statutory limit on a gross week's pay (www.practicallaw.com/9-200-3634) (section 227, Employment Rights Act 1996) is prescribed annually. The current limit was prescribed by the Employment Rights (Increase of Limits) Order 2014 (SI 2014/382). There is no minimum amount.

 

Maximum

6 April 2014 - 5 April 2015

£464

1 February 2013 - 5 April 2014

£450

For the limits that applied before 1 February 2013, see Checklist, Historical rates and limits for employment lawyers: Week's pay (www.practicallaw.com/5-504-5920).

 

Other useful information

Disclosure and Barring Service fees

The Disclosure and Barring Service (DBS) was formed on 1 December 2012, following the merger of the Criminal Records Bureau and the Independent Safeguarding Authority. The DBS checking service enables organisations in England and Wales to conduct criminal records checks and obtain details of spent and unspent criminal convictions and other related information in certain circumstances. The adult first check allows an individual to be checked against the DBS adults barred list while waiting for the full criminal record check to be completed, to help prevent unsuitable people from working with children and vulnerable adults.

For more information, see Practice note, Carrying out criminal records checks (www.practicallaw.com/5-210-3956).

Check or application

Fee

Standard DBS check

£26

Enhanced DBS check

£44

DBS adult first check

£6

Registration application

£300

Countersignatory application

£5

(See Home Office: Disclosure and Barring Service.)

Information Commissioner fees

There are two levels of fee for notifying the Information Commissioner of a data controller's (www.practicallaw.com/5-107-5723) processing activities.

  • £500 if the data controller fulfils one of the following criteria:

    • Has a turnover of £25.9 million or more and employs 250 or more staff.

    • Is a public authority with 250 or more staff.

  • £35 if the data controller is not covered by the criteria for paying the higher fee.

The fee for registered charities and small occupational pension schemes is £35, regardless of their size and turnover, unless they are exempt altogether.

(Data Protection (Notification and Notification Fees) (Amendment) Regulations 2009 (SI 2009/1677).)

See the ICO website for further details.

Certification Officer fees

The Certification Officer is responsible for:

  • Maintaining a list of trade unions and employers' associations.

  • Receiving, ensuring compliance with statutory requirements and keeping available for public inspection annual returns from trade unions and employers' associations.

  • Determining complaints concerning trade union elections, certain other ballots and certain breaches of trade union rules.

  • Ensuring observance of statutory requirements governing mergers between trade unions and between employers' associations.

  • Overseeing the political funds and the finances of trade unions and employers' associations.

  • Certifying the independence of trade unions.

The current fees have applied since 6 April 2005 (see Certification Officer (Amendment of Fees) Regulations 2005 (SI 2005/713)).

Function

Fee

Listing of trade union or employers' association

£150

Approval of change of name

£96

Application for approval of an instrument of amalgamation or transfer

£1,850

Entry of amalgamated organisation on list (where each component organisation is already entered)

£41

Certificates of independence

£4,066

Inspection of merger documents

£19

In addition, the Certification Officer charges 35p a page for photocopying and on a sliding scale from £2.50 for inspection of documents other than merger documents.

For more information, see the Certification Officer website.

Criminal fines

The maximum fines payable on conviction of an adult for a summary offence are set out in the standard scale (www.practicallaw.com/3-385-0930) (section 37(2), Criminal Justice Act 1982).

In relation to Scotland, the standard scale is set out in section 225(2) of the Criminal Procedure (Scotland) Act 1995. The current standard scale was inserted into the Criminal Justice Act 1982 and the Criminal Procedure (Scotland) Act 1975 (the predecessor of the 1995 Act) by section 17(1) of the Criminal Justice Act 1991. Consequently, the standard scale in both jurisdictions is the same.

Level

Fine

Level 1

£200

Level 2

£500

Level 3

£1,000

Level 4

£2,500

Level 5

£5,000

Allowances for jury service

England and Wales

Employers are not required to pay employees during jury service absence, leaving the employee to claim for travel and food expenses and for loss of earnings from the court. The Lord Chancellor has power to determine the payment rates, with the consent of the Minister for the Civil Service (section 19(1), Juries Act 1974). The following rates have applied in England and Wales since 1 June 2010.

Period of jury service

Maximum financial loss allowance

Up to and including four hours on any day

More than four hours on any day

First ten days of jury service

£32.47

£64.95

Between the 11th day and the 200th day

£64.95

£129.91

On the 201st and all subsequent days

£114.03

£228.06

For more information on time off for jury service, see Practice note, Time off: overview: Jury service (www.practicallaw.com/1-386-6908).

Scotland

Jurors in Scotland can claim the allowances regardless of whether they actually serve on a jury. The allowances can be claimed in respect of:

  • Loss of earnings or social security welfare benefits.

  • Additional expenses, which would not otherwise have been incurred, in employing a childminder, other child carer, or carer for a dependent adult.

(Jurors' Allowances (Scotland) Regulations 2010 (SI 2010/424).)

The following rates have applied in Scotland since 10 January 2011. Note that for the first five days of jury service, there are different limits depending on whether the period on any day lasted for more than four hours. However, after the first five days the number of hours on any day is irrelevant.

Period of jury service

Maximum financial loss allowance

Up to and including four hours on any day

More than four hours on any day

First five days

£32.47

£64.95

Between the sixth day and the 100th day

£129.91

£129.91

On the 101st and all subsequent days

£230

£230

 
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