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New Increases In Compensation Limits In Employment Tribunals

From 6th April 2018 the current figure of £489.00 for the maximum amount for a week’s pay which is used for calculating various awards including Statutory Redundancy Payments and Unfair Dismissal Basic Awards will be increased to £508.00. In addition the limit on an amount of unfair dismissal compensatory award will increase from £80,541.00 to £83,682.00.
• The minimum amount of unfair dismissal basic award for Trade Union, Health and Safety, Work in time representative, Pension Scheme, Trustee and Employee representative dismissals will be increased from £5,970.00 to £6,203.00.
• The minimum amount on lawful exclusion or expulsion from Trade Union is increased from £9,118.00 to £9,474.00.
• The maximum guarantee payment per day is increased from £27.00 to £28.00.
• The amount for unlawful inducement relating to Trade Union Membership/activities or collective bargaining is increased from £3,907.00 to £4,059.00.
This is implemented by the Employment Rights (Increase of Limits) Order 2018, SI 2018/194.
The purpose of this Order is to reflect the increase in the Retail Prices Index of 3.9% from September 2016 through September 2017.
Please note the Compensatory Award is for dismissals on or after 29th July 2013 and is subject generally to a limit of 52 weeks actual pay if that is less than the set statutory figure of £80,541.00 which will increase to £83,682.00.
The new limit applies where the “appropriate date” is on or after 6th April 2018. The appropriate date varies according to the different types of claim and are set out in Article 4 (2) of the Order. i.e. in the event of redundancy payments this follows the relevant date at Section 135 of the Employment Rights Act 1996.

For further information please contact our Specialist Team on 0800 088 6004.