Jersey employment law developments summarised by Appleby’s top-ranked lawyers

Niall MacDonald and Richard Sheldon are ranked as a Leading Partners in Jersey and Guernsey respectively (having been endorsed by peers and clients alike as on the strongest partners in his field) and associate James Gallimore has been ranked a Leading associate (having been recognised as being one to watch).

Their Channel Islands’ practice is busier than ever, with clients adjusting to an array of developments to Jersey employment legislation that were introduced this year as summarised below, and if you seek any further information please contact them.

Compensation

 Unfair dismissal: Higher bands for long serving employees have been introduced. This means that:

• • Employees with 10 years’ service can now be eligible for a compensation award equivalent to 31 weeks’ pay;
  • Employees with 15 years’ service or more are now eligible for an award equivalent to 36 weeks’ pay; and
  • On top of this, the Tribunal has a new power to apply an uplift to awards (at any length of service) by 25% having regard to the employer’s conduct, where it considers reasonable to do so.

Discrimination claims: the maximum compensation has risen from £10,000 to £30,000 or 52 weeks of pay (whichever is the lesser), which includes an award for hurt/distress.

• Breach of statutory rights: the cap rose from 4 weeks’ pay to 8 weeks’ pay.
• Breach of contract claims: the cap rose from £10,000 to £30,000.

Written reasons for dismissal

Employers must provide a statement in writing setting out reasons for dismissal.

The reasons for dismissal must be signed and dated by the employer and be given to the employee no later than 7 days after the date of the employee’s last day of employment

Where a claim in relation to failure to provide a statement is upheld, the Tribunal will be able to order an employer to make a compensation payment of up to eight weeks’ pay.

Minimum wage

The minimum wage increased to £13 per hour from 1 September 2025.

All employees are entitled to receive the minimum wage, which is reviewed annually.  With effect from 1 September 2025, the minimum wage rates are as follows:

• For employees – £13 per hour;
• Trainee Rate Year 1 – £10.50 per hour; and
• Trainee Rate Year 2 – £11.75 per hour.

Costs orders

The Jersey Tribunal is able to award costs to either party where it considers a party’s conduct has been vexatious, disruptive or unreasonable.

If an application is successful, the Tribunal can award costs up to a maximum of £10,000 on an indemnity basis.

This amendment was made introduced by the Minister for Social Security in view of proposals by the Chamber of Commerce Employment & Skill Committee of which Niall MacDonald is a member.

Statutory redundancy pay

With effect from 23 September 2025, the statutory cap on a week’s pay for statutory redundancy pay purposes is £1,040.