From 6 April 2026, new statutory limits apply in Northern Ireland to employment tribunal awards, redundancy calculations and related payments. The Employment Rights (Increase of Limits) Order (Northern Ireland) 2026 brings the annual index‑linked uplift required by Article 33 of the Employment Relations (Northern Ireland) Order 1999, using the 4.5% rise in the Retail Prices Index between September 2024 and September 2025. (niassembly.gov.uk)
Headline figures are as follows. The cap on a week’s pay rises to £783 for redundancy payments and for calculating the basic or additional award for unfair dismissal. The compensatory award cap for unfair dismissal increases to £123,785. The minimum basic award for certain automatic unfair dismissals moves to £9,512. The standard award for unlawful inducements relating to trade union membership or collective bargaining under Article 77E becomes £6,290. Guarantee pay increases to £41 per day. The weekly pay limit used for Department payments under Part XIV (for example, insolvency‑related debts) also becomes £783. (niassembly.gov.uk)
For redundancy calculations and the basic award, the £783 week’s‑pay cap means the notional maximum equals 30 weeks at the cap, i.e. £23,490, reflecting the 20‑year service limit and age‑band multipliers in the 1996 Order. Using the previous year’s cap of £749, the equivalent figure was £22,470, so employers should refresh budget models and settlement parameters accordingly. (niassembly.gov.uk)
The Order contains transitional provisions. The new limits only apply where the “appropriate date” falls on or after 6 April 2026; cases with an earlier appropriate date continue to use the 2025 limits (S.R. 2025 No. 63). Organisations handling claims that straddle the tax year boundary should fix the applicable schedule by identifying that date first, before valuing exposure. (niassembly.gov.uk)
The appropriate date varies by right. For unfair dismissal it is the “effective date of termination” under Article 129 of the Employment Rights (Northern Ireland) Order 1996. For statutory redundancy on dismissal, it is the “relevant date” under Article 180; for lay‑off or short‑time claims, the Article 188 relevant date applies. For guarantee pay, it is the day in respect of which the payment is due. (niassembly.gov.uk)
Union‑related provisions are also anchored to event dates. In expulsion cases the appropriate date is the date of expulsion; for unjustifiable discipline it is the determination date; for failure to consult on training matters it is the date of failure; and for unlawful inducement awards under Article 77E it is the date the offer was made. These anchors determine whether 2025 or 2026 figures apply. (niassembly.gov.uk)
For payroll and HR operations, immediate actions include updating redundancy and settlement calculators to the £783 week’s‑pay cap, revising internal guidance on the £41 daily guarantee pay rate, and ensuring claims handling, reserves and template correspondence reflect the updated caps and the appropriate‑date test for pre‑6 April events. Where insolvency‑related claims arise, the Department’s weekly pay limit of £783 should be applied. (niassembly.gov.uk)
Compared with the 2025 Order, the principal uplifts are: week’s‑pay cap £749 to £783; compensatory award cap £118,455 to £123,785; unlawful inducement award £6,019 to £6,290; minimum basic award in specified automatic unfair dismissal cases £9,102 to £9,512; guarantee pay £39 to £41; and the Part XIV weekly pay limit £749 to £783. The 2026 Schedule confirms that its “Old Limit” column cross‑refers to the 2025 Schedule. (niassembly.gov.uk)
The Department notes that no impact assessment is required because the indexation follows a predetermined statutory formula linked to RPI, with rounding rules set out in Article 33(3) of the 1999 Order. This is a technical adjustment rather than a policy change, but it has immediate effects on compensation modelling and payroll compliance from 6 April 2026. (niassembly.gov.uk)