Employment Tribunal Compensation Limits to Increase From 6 April 2024

The Employment Rights (Increase of Limits) Order 2024 (SI 2024/213) has been laid before Parliament and will have the effect of increasing compensation limits for tribunal awards. The increases have been based on the retail prices index from September 2023, which increased by 8.9% from the year before.

From 6 April 2024, the following new figures will apply:

• The limit on a week’s pay will increase from £643 to £700.
• The maximum compensatory award for unfair dismissal will increase from £105,707 to £115,115.
• The minimum basic award for certain unfair dismissals (including health and safety dismissals) will increase from £7,836 to £8,533.

In cases involving unfair dismissal, the new figures apply where the effective date of termination is on or after 6 April 2024.

These increases are applicable in cases where the incident that gave rise to the right to reimbursement or another payment happened on or after April 6 2024.

The previous caps will remain in place if the relevant occurrence occurs before April 6 2024, even if the compensation occurs after that date.

When facing potential Employment Tribunal Claims as an employer, it is imperative to review the increase of compensation which may have an impact on the business.

For further information about this article, please contact the Employment Team.