Employment Tribunal maximum awards set to increase 6th April 2024

The annual increase to the limits of certain Tribunal awards have been announced and will apply from 6^th April 2024.

The Employment Rights (Increase of Limits) Order 2024 The Employment Rights (Increase of Limits) Order 2024 (legislation.gov.uk) has now been paid before Parliament and the following compensation limits will be increased:

• The limit on statutory week’s pay (used for calculating various awards, including statutory redundancy and unfair dismissal basic awards) is increasing from £643 to £700.
• The maximum compensatory award for unfair dismissal increasing from £105,707 to £115,115
• The minimum basic award for certain unfair dismissals from £7,836 to £8,533.
• The cap on statutory redundancy pay increasing from £19,290 to £21,000.

As an employer dealing with potential Employment Tribunal claims, it is important to assess how these substantial rises in compensatory awards might impact your business and your approach to managing future employment issues.