The Government has announced this year’s annual increase to Employment Tribunal compensation limits for certain tribunal awards and other statutory payments, including statutory redundancy pay. The increased rates, which apply from 6 April 2024, reflect the increase in the retail prices index (RPI) of 8.9% from September 2022 to September 2023.
The key increases are a:
- limit on statutory week’s pay (used for calculating various awards, including statutory redundancy and unfair dismissal basic awards) increasing from £643 to £700.
- maximum compensatory award for unfair dismissal increasing from £105,707 to £115,115 (or a year’s gross pay, whichever is lower).
- minimum basic award for certain unfair dismissals (including health and safety dismissals) increasing from £7,836 to £8,533.
- cap on statutory redundancy pay increasing from £19,290 to £21,000.
What employers need to know
These increases apply where the event giving rise to the entitlement to compensation or other payment occurred on or after 6 April 2024.
When the relevant event falls before 6 April 2024, the old limits will still apply, even when the compensation falls after that date.
As an employer, if you are facing potential Employment Tribunal claims, it is important to consider what effect these significant increases to compensatory awards may have on your business and your approach to managing employment issues.
For help and advice on employment tribunals or related issues, please contact Emily Morrison by calling 01727 798106 or emailing emily.morrison@salaw.com.
