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Employment Tribunal compensation limits increase

View profile for Charlotte Holman
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From 6 April 2019, new increased compensation limits for employment tribunals will come into force. Under the provisions of the Employment Rights (Increase of Limits) Order 2019, the increases include a revised figure of £525 (currently £508) for the maximum amount of a week’s pay. This is used for calculating various awards, including statutory redundancy payments and unfair dismissal basic awards. It also includes a higher maximum unfair dismissal compensatory award of £86,444 (currently the statutory cap is £83,682).

The maximum basic award for unfair dismissal will become £15,750 (increased from £15,240). This makes the maximum total basic and compensatory awards for unfair dismissal £102,194. Although the compensatory award is generally subject to a limit of 52 weeks’ actual pay, if it is less than the statutory cap, which, as referred to above, is currently set at £83,682, but is due to increase to £86,444 in April 2019.

If you would like any advice on these increases, or have employment issues to discuss, please do not hesitate to contact one of our employment and HR specialists. I am based in our Basildon office and can be contacted on 01268 244150 or charlotte.holman@birkettlong.co.uk.

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