With effect from 6 April 2023, compensation awards and statutory redundancy payments in the Employment Tribunal will increase.
Pursuant to the Employment Rights (Increase of Limits) Order 2023:
- There will be an increase to the cap on one week’s pay from £571 to £643;
- The maximum compensatory award for unfair dismissal will rise from £93,878 to £105,707; and
- The minimum basic award for certain unfair dismissals will increase from £6,959 to £7,836. The increase will affect dismissals regarding trade union membership, carrying out activities as an employee representative, for carrying out duties as an occupational pension scheme trustee and health and safety dismissals.
The increases will apply to cases involving unfair dismissal where the effective termination date falls on or after 6 April 2023. However, if the dismissal or relevant event occurred prior to 6 April 2023, the previous limits will apply, regardless of the date compensation is awarded.