Limits on tribunal awards will increase from 6 April 2022 as follows:
- The cap on a week's pay (used to calculate the basic awards in unfair dismissal cases and statutory redundancy payments) will increase to £571 (from £544).
- The maximum compensatory award for ordinary unfair dismissal will increase to £93,878 (from £89,493).
- Minimum amount of unfair dismissal basic award for trade union, health and safety, working time representative, pension scheme trustee and employee representative dismissal will increase to £6,959 (increased from £6,634).
- The maximum basic award for unfair dismissal will increase to £17,130. This means the maximum award for an ordinary unfair dismissal is now £111,008.
A note for employers
The new figures apply where the effective date of termination in dismissal cases and the relevant date for redundancy payments falls on or after 6 April 2022. This means that for any redundancies taking effect on or after 6 April 2022, statutory redundancy payments will need to be recalculated in line with the increased limits.
Originally Published 01 March 2022
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