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Increases to Compensatory Limits for Employment Claims, National Minimum and Living Wage Announced

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In April of each year, various increases are made to different limits of compensation awarded to individuals who bring claims to the Industrial Tribunal for unfair dismissal and discrimination in Northern Ireland, as well as increases to the national minimum and living wage.

Increases to Awards Made in Unfair Dismissal Claims

On 27 March 2024, the Employment Rights (Increase of Limits) Order (Northern Ireland) 2024 was passed. The Order took effect from 6 April and increased limits to certain awards and payments awarded by the Industrial Tribunal in relation to unfair dismissal claims in Northern Ireland.

Therefore, for unfair dismissal claims presented on or after 6 April 2024, the following increases apply:

  • Maximum amount of a Week’s Pay (which is for the purpose of calculating a redundancy payment and basic award or additional award for unfair dismissal) increases from £669 to £729.
  • Limit on amount of Compensatory Award for unfair dismissal increases from £105,915 to £115,341.
  • Limit on amount of Guarantee Payment for a workless day increases from £­­35 to £38.

Increases to Awards Made in Discrimination Claims

In relation to awards made for unlawful discrimination, for example on the grounds of age, sex, race or disability, which can include both financial and non-financial elements, in the majority of successful discrimination claims, compensation will include an award for Injury to Feelings.

In Northern Ireland, there is no legislation guidance on how to calculate Injury to Feelings in monetary terms and it has therefore been left to the Tribunals and Courts to determine. When assessing Injury to Feelings the Tribunal refers to the “Vento Bands” for guidance.

Each year in April the Vento Bands increase, therefore for discrimination claims presented on or after 6 April 2024, the following Vento Bands will apply:

  • Lower Band from £1,200 to £­­­11,700 (less serious cases);
  • Mid Band increases from £11,700 to £35,200 (cases that do not merit an award in the upper band); and
  • Upper Band increases from £35,200 to £58,700 (the most serious cases).

National Minimum Wage and Living Wage Increases

In addition to the above, the National Minimum Wage and Living Wage increased from 1 April 2024. The new National Minimum Wage (for those aged 16 to 21) and National Living Wage (for those aged 21 and over) rates apply for eligible workers in Northern Ireland.

The Table below sets out the current minimum wage rates and new rates as of April 2024:

Rate from 1 April 2023 Rate from 1 April 2024
National Living Wage (NLW)
for workers 21 and over
£10.42 £11.44
18-20 year old rate (NMW) £7.49 £8.60
16-17 year old rate (NMW) £5.28 £6.40
Apprentice rate £5.28 £6.40

 

 This article has been produced for general information purposes and further advice should be sought from a professional advisor. Please contact our Employment team at Cleaver Fulton Rankin for further advice or information.


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Philippa Herron

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