Changes to tribunal compensation limits announced

Changes to tribunal compensation limits announced

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Every April brings with it changes in the rates and limits that are relevant to employers, including caps on weekly pay and tribunal compensation for unfair dismissal claims. These changes are due to take effect on 6 April 2024 and reflect the increases in the retail price index of 8.9% from September 2022 to September 2023. Further detail can be found below.

Weekly pay

The value of a number of employment claims, including statutory redundancy pay, are calculated by reference to an employee’s weekly pay. This weekly pay is itself subject to a cap of a specified amount.

Therefore, as of 6 April 2024, the specified cap on weekly pay will increase to £700. Consequently, statutory redundancy pay will increase, with the maximum possible payment increasing to £21,000.

Compensation for unfair dismissal

Compensation for unfair dismissal claims is split into a “basic” award and a “compensatory” award. The basic award is calculated in the same way as statutory redundancy pay and will therefore increase as described above.

The compensatory award is calculated by reference to the claimant’s loss of earnings, subject to a statutory cap. The cap on the compensatory award for ordinary unfair dismissal claims will increase as of 6 April 2024 to £115,115 (or 52 weeks’ gross actual pay, if lower).


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