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Awards for Employment Tribunal Claims to Increase

on Friday, 08 March 2019.

The compensation limits for certain awards that can be made by the employment tribunal and other statutory payments are to increase by 3.3% from April 2019.

Which Awards and Statutory Payments Are Affected?

Where a successful claim is made for unfair dismissal, a tribunal can award compensation in the form of a basic award and a compensatory award. The basic award is calculated by taking into account the employee's age, how long they have worked for the employer and their salary, in the same way as a statutory redundancy payment. Salary is looked at in terms of a week's pay, which is subject to a maximum cap. The compensatory award is "such amount as the Tribunal considers just and equitable in all the circumstances having regard to the loss sustained by the complainant in consequence of the dismissal insofar as that loss is attributable to action taken by the employer", and is subject to a maximum cap.

What Are the New Limits?

Compensation Limit

Current Figure

From 6 April 2019

Maximum limit on a week's pay

£508

£525

Maximum compensatory award for unfair dismissal

£83,682

£86,444

Minimum basic award for certain unfair dismissals

£6,203

£6,408

 

The increases are based on the September retail prices index. These new figures will apply to cases where the termination of employment occurs after 6 April 2019.


For more information, please contact Ellie Boyd in our Employment Law team on 020 7665 0940.

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