Employment Tribunal compensation limits to increase from 6 April 2018

Tribunal compensation limits and minimum awards will increase on 6 April 2018.

The maximum compensatory award for unfair dismissal will rise from £80,541 to £83,682. The maximum amount of a week's pay, used to calculate various awards including statutory redundancy payments and the basic award for unfair dismissal, also rises from £489 to £508. The minimum basic award in certain cases where a dismissal is automatically unfair (for example where the reason for dismissal is trade union membership or carrying out activities as a health and safety representative) is currently £5,970, but this will increase to £6,203.

The new rates take effect where the 'appropriate date' for the cause of action (such as the date of termination in an unfair dismissal claim) falls on or after 6 April 2018. Where the appropriate date falls before 6 April, the old limits will still apply, irrespective of the date on which compensation is awarded.

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Frances Rollin

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