Annual Increase in Tribunal Awards Announced
The Employment Rights (Increase of Limits) Order 2018 will come into force on 6 April 2018 and will increase the maximum and minimum tribunal awards.
The significant increases are:
- maximum week's pay (for redundancy payments and the unfair dismissal basic award): £508 (currently £489)
- maximum compensatory award for unfair dismissal: £83,682 (currently £80,541)
- minimum basic award for certain unfair dismissals (dismissals for reasons of trade union membership or activities, health and safety duties, pension scheme trustee duties or acting as an employee representative or workforce representative): £6,203 (currently £5970)
Best Practice
Employers should be aware that in cases involving dismissal, the new figures will apply where the effective date of termination (EDT) falls on or after 6 April 2018. The EDT is defined in legislation as:
- the date on which the employee's notice expires (where the employee has been dismissed with notice); or
- the date on which termination takes effect (where the employee has been dismissed without notice)
For dismissals where the EDT was on or before 5th April 2018, the current rates will apply.