Employment Key Fact Guide

Our Employment Key Fact Guide provides a range of information for employers below, including:

  • Employment Tribunal claim qualification period and time limits
  • Employment Tribunal compensation limits
  • Redundancy pay (and basic unfair dismissal award) calculation
  • Statutory maternity, paternity and adoption leave entitlements
  • Statutory maternity, paternity and adoption pay entitlements
  • Claims relating to statutory maternity, paternity and adoption entitlements
  • Statutory sick pay
  • Statutory notice
  • National minimum wage
  • Income tax bands
  • Income tax personal allowances

Key figures at a glance

Maternity, adoption, paternity and shared parental prescribed pay rate £140.98 per week 
Statutory Sick Pay  £89.35 per week
National Minimum Wage for adult workers

Age 25+ £7.50 per hour (NLW)
Age 21-24 £7.05 per hour (NMW)

Limit on a week’s pay for basic award and statutory redundancy payments  £489 per week
Maximum basic award/statutory redundancy payment  £14,670
Maximum compensatory award for unfair dismissal  £80,541 (or one year’s gross pay, whichever is lower)
Qualifying service for unfair dismissal claims  2 years
Qualifying service for discrimination and automatic unfair dismissal claims  None

Employment Tribunal Fees

Fee type  Type A claims (including wages claims)  Type B claims (including unfair dismissal and discrimination claims) 
 Issue fee £160   £250
 Hearing fee  £230 £950 

Statutory Notice

This table sets out the number of weeks notice that employees are entitled to receive, depending on their length of employment.

Employee’s length of employment  Notice required by employer 
Less than one month  No statutory requirement 
One month to two years One week
Two to twelve years One week for each complete year of employment
Twelve years or more  12 weeks (maximum)

Note: Employers are entitled to one week’s notice from employees employed for one month or more.

Statutory sick pay

Those entitled to statutory sick pay will receive £89.35 per week for a maximum of 28 weeks in any period of incapacity for work or any linked series spanning a maximum of 3 years.

National minimum wage

This table sets out the hourly rates for the national minimum wage applicable from 1 April 2017 to 30 September 2017.

Rate (based on age)  Minimum entitlement at 1 April 2017
National Living Wage for all employees aged 25 and over £7.50
Adult rate (workers aged 21 to 24) £7.05
Development rate (workers aged 18 to 20 and those aged 21 and over doing accredited training in the first six months of employment)  £5.60
Youth rate (workers aged 16 and 17)  £4.05
Apprentices aged under 19 or in their first year of apprenticeship (otherwise refer to age bands) £3.50 

Employment tribunal claim qualification period and time limits

This table sets out:

  • the amount of time an employee needs to have been employed in order to make each claim
  • the time limits in which claims must be brought
Employment Tribunal claim  Qualifying period  Limitation period  Notes 
Written reasons for dismissal  2 years Within 3 months starting from EDT*  ET may extend the time limit where it was ‘not reasonably practicable’ to bring the claim in time.
Unfair dismissal  2 years Within 3 months starting from EDT* 
Automatically unfair dismissal e.g. relating to health and safety or whistleblowing  None  Within 3 months starting from EDT* 
Statutory redundancy payment 2 years Within 6 months starting from the relevant date*  
Failure to inform or consult – collective redundancy None Before dismissal or within 3 months starting with the date of dismissal

ET may extend the time limit where it was ‘not reasonably practicable’ to bring the claim in time. 

Failure to inform or consult – TUPE  None  Before dismissal or within 3 months starting with the date of the dismissal  ET may extend the time limit where it was ‘not reasonably practicable’ to bring the claim in time.
Discrimination  None  Within 3 months starting with the date of the act complained of ET may extend the time limit where it is  ‘just and equitable’ to do so.
Contract claim None  Within 3 months starting from EDT* or final day worked Applies to contract claims in the Employment Tribunal.  ET may extend the time limit where it was ‘not reasonably practicable’ to bring the claim in time.
Equal pay None  Within 6 months starting with termination of employment  

*Effective date of termination/relevant date: an employee’s period of continuous employment ends on the effective date of termination (EDT) or relevant date, which is usually the last day of employment, but may be a later date in certain cases.

Employment tribunal compensation limits

This table sets out:

  • the maximum total that the Employment Tribunal can award for each claim
  • the maximum number of weeks’ gross pay that can be used to calculate the award where applicable
Employment Tribunal claim Minimum week’s pay  Maximum week’s pay  Maximum total award  Notes 
 Unfair dismissal – basic award No minimum  £489 £14,670   
 Unfair dismissal – compensatory award No minimum  Unlimited  £80,541 or one year’s gross pay, whichever is lower  Award is unlimited for unfair dismissal relating to health and safety and whistleblowing. 
 Statutory redundancy payment  No minimum £489 £14,670  
 Failure to inform or consult – collective redundancy N/A  N/A  90 days’ gross actual pay  
 Failure to inform or consult – TUPE N/A  N/A 13 weeks’ gross actual pay  Applies whether or not claimant accepted TUPE transfer 
 Discrimination N/A    

Compensation may be unlimited

Award is based on the loss the claimant has suffered. Non-financial loss is usually based on injury to feelings

 Breach of contract claim N/A  N/A   £25,000  Applies to contract claims in the Employment Tribunal – claims in excess of this sum must be issued in the County Courts or High Court

Redundancy pay (and basic unfair dismissal award) calculation

The redundancy pay entitlement and basic unfair dismissal awards are calculated in the same way using the following formula:

[age based multiplier] x [number of complete years of employment] x [gross weekly salary]

Note: the number of complete years of employment and gross weekly salary are subject to statutory maximums, currently 20 years and £489 respectively.

This table sets out the multiplier applicable for each age group.

Employee’s age  Multiplier 
 Below 22 years  0.5 week’s pay
 Between 22 and 40 years  1 week’s pay
 41 and over  1.5 week’s pay

Note: the entitlement/award is calculated working backwards from the end of employment for a maximum of 20 years.  If the employment spans over two age brackets, it is necessary to do a separate calculation for the number of complete years of employment served in each age bracket.

Statutory maternity, paternity, shared parental and adoption leave entitlements

This table sets out:

  • statutory maternity, paternity, shared parental and adoption leave entitlements
  • the amount of time an employee needs to have worked for you in order to qualify
Leave  Key qualifying conditions  Length of leave  Notes 
Maternity leave None   26 weeks of ‘Ordinary Maternity Leave’ and 26 weeks ‘Additional Maternity Leave’.

Further eligibility requirements apply e.g. giving sufficient notice, providing a declaration from the mother for additional paternity leave, and providing a certificate (MATB1) from a midwife or doctor.

Additional procedural requirements apply to take Shared Parental Leave.

    

Paternity leave (for biological fathers and partners of adopters) 
  • Employed for at least 26 weeks at the end of the Qualifying Week*
  • Married to/civil partner of/partner of the mother and expecting to have responsibility for the child

One or two consecutive weeks ‘Paternity Leave’ within 56 days of the date of the baby’s birth or placement.

 

Shared Parental Leave
  • Employed for at least 26 weeks at the end of the Qualifying Week*
  • Mother or married to/civil partner of/partner of the mother and expecting to have responsibility for the child.
  • Mother has served curtailment notice to end maternity leave and have served notice of entitlement and intention to take SPL

Up to 50 weeks of Shared Parental leave available for eligible parents to take or share.  A mother or primary adopter will be able to end their maternity or adoption leave and share the untaken with the other parent as Shared Parental Leave.

 

Adoption leave
  • Matched with a child for adoption by an adoption agency
  • Employed for at least 26 weeks at the end of the Qualifying Week*
26 weeks of ‘Ordinary Adoption Leave’ and 26 weeks ‘Additional Adoption Leave’.

*The Qualifying Week is the 15th week before the expected week of childbirth (EWC) or the week the adopter is notified of the adoption placement.

Statutory maternity, paternity, shared parental and adoption pay entitlements

This table sets out:

  • Statutory maternity, paternity, shared parental and adoption pay entitlements
  • The amount of time an employee needs to have worked in order to qualify
  • The average weekly salary an employee needs to earn in order to qualify
  • Maternity allowance (MA)
Pay  Key qualifying conditions  Amount of payment 
Maternity pay (SMP)

Employed for at least 26 weeks at the end of the Qualifying Week*

Average weekly earnings of at least £112 for the 8 weeks ending the Qualifying Week

  1. For the first 6 weeks – 90% of their normal weekly earnings
  2. For the following 33 weeks – the lower of £139.58 or 90% of their average weekly earnings if lower 
Paternity pay (for biological and adopting fathers)

Employed for at least 26 weeks at the end of the Qualifying Week*

Average weekly earnings of at least £112 for the 8 weeks ending with the Qualifying Week

Married to/civil partner/partner of the mother

Ordinary Paternity Leave – for the period of leave – the lower of £140.98 or 90% of the average weekly earnings

 

 Adoption pay (SAP)

Matched with a child for adoption by an adoption agency

Employed for at least 26 weeks at the end of the Qualifying Week*

Average weekly earnings of at least £112 for the 8 weeks ending the Qualifying Week 

  1. For the first 6 weeks – 90% of their normal weekly earnings
  2. For the following 33 weeks – the lower of £140.98 or 90% of their average weekly earnings if lower 
Shared Parental Leave Pay (ShPP)

 Employed for at least 26 weeks at the end of the Qualifying Week*

Average weekly earnings of at least £112 for the 8 weeks ending with the Qualifying Week

Mother or married to/civil partner/partner of the mother.  Partner of parent claiming must also meet minimum criteria

For up to 39 weeks, less any weeks spent by the child’s mother or adopter in receipt of SMP, MA or SAP, £140.98 or 90% of their average weekly earnings paid if lower 
Maternity allowance (MA) 

Not entitled to Statutory Maternity Pay

Employed or self-employed for at least 26 weeks in the 66 weeks before the expected week of childbirth

Average gross weekly earnings are at least £30 a week, and stopped work to have the baby

For up to 39 weeks £140.98 or 90% of their average weekly earnings paid if lower

*The Qualifying Week is the 15th week before the expected week of childbirth (EWC) or the week the adopter is notified of the adoption placement

Claims relating to statutory maternity, paternity, shared parental and adoption entitlements

This table sets out:

  • The amount of time an employee needs to have worked in order to bring an employment tribunal claim
  • The time limits in which each claim must be brought
Employment Tribunal Claim or Statutory Right  Qualifying Period  Limitation Period  Notes 
Unfair dismissal for a reason connected to pregnancy, childbirth, or maternity/parental/dependant care leave/shared parental leave  None 3 months starting with the date of the last date of employment ET may extend the time limit where it was ‘not reasonably practicable’ to bring the claim in time 
Right not to suffer a detriment in relation to pregnancy, childbirth, maternity, paternity, shared parental and adoption leave  None 3 months starting with the date of the last act or omission 

 ET may extend the time limit where it was ‘not reasonably practicable’ to bring the claim in time

Right in connection with shared parental leave only applies if act, or failure to act, takes place on or after 1 December 2014

Income tax bands

This table sets out the income tax bands applicable as at 6 April 2017 for income tax (after any personal allowances).

Rate of income tax  Income band
20% – basic rate  £0 to £33,500
40% – higher rate  £33,501 to £150,000
45% – additional rate  £150,001 plus

Income tax personal allowances

This table sets out the income tax personal allowances applicable as from 6 April 2017.

Personal allowance banding  Amount 
People born on or after 6 April 1948  £11,500
Income limit for age-related allowances £100,000