Individuals bringing employment tribunal claims in the UK will see a notable increase in the maximum compensation they can be awarded.
Under the Employment Rights (Increase of Limits) Order 2024, the following limits will apply from 6 April 2024:
Maximum compensatory award
The maximum compensatory award rises from £105,707 to £115,115, allowing individuals to potentially recover higher compensation for losses suffered due to unfair dismissal, discrimination, or other employment tribunal claims.
Limit on a week’s pay
The limit on a week’s pay is increasing from £643 to £700, impacting calculations for various awards, including basic awards for unfair dismissal and statutory redundancy payments.
Maximum basic award
For some types of unfair dismissal claims, the minimum basic award is increasing from £7,836 to £8,533.
Statutory guarantee pay
The daily statutory guarantee payment for employees laid off or subjected to short-time working increases from £35 to £38.
Need assistance?
The increased potential costs should incentivise employers to maintain fair practices and avoid actions leading to successful tribunal claims. For specialist advice, contact us.
Last updated: 28 February 2024
Author
Founder and Managing Director Anne Morris is a fully qualified solicitor and trusted adviser to large corporates through to SMEs, providing strategic immigration and global mobility advice to support employers with UK operations to meet their workforce needs through corporate immigration.
She is a recognised by Legal 500 and Chambers as a legal expert and delivers Board-level advice on business migration and compliance risk management as well as overseeing the firm’s development of new client propositions and delivery of cost and time efficient processing of applications.
Anne is an active public speaker, immigration commentator, and immigration policy contributor and regularly hosts training sessions for employers and HR professionals
