The Government has confirmed that compensation limits for employment tribunal claims and other statutory payments increased from 6 April 2025.
These updated limits will apply in cases where the effective date of termination falls on or after 6 April 2025. The adjustments are linked to the Retail Prices Index (RPI) increase of 2.7%, measured in September 2024.
Key Changes for Employers and HR Teams
The revised figures include the following updates:
- A week’s pay (for redundancy and basic awards): increasing from £700 to £719
- Maximum compensatory award for unfair dismissal: rising from £115,115 to £118,223
- Minimum basic award for certain types of unfair dismissal (such as those related to health and safety): increasing from £8,533 to £8,763
- Compensatory award cap for breaches of tips legislation (e.g. failing to implement a fair tips policy): moving from £5,000 to £5,135
Implications for Employers
Employers should ensure that HR policies, payroll systems, and settlement documentation reflect the updated figures where applicable.
