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Annual Increase in Tribunal Limits

27 March 2023

The Employment Rights (Increase of Limits) Order 2023 comes into force on 6 April 2023, signifying the regular annual increase in tribunal limits. The key changes are outlined below:

 

Award Old Figures New Limits
Maximum compensatory award in relation to a claim for unfair dismissal £93,878 £105,707
The limit on a week’s pay for basic award and redundancy payments £571 £643
Automatically unfair dismissal basic award minimum £6,959 £7,836

For employees, if your employment terminates on or after 6 April 2023, your entitlements will increase if you pursue a claim for unfair dismissal, or if you are entitled to a statutory redundancy payment. In addition to factors such as reputational damage to the employer and increases to the cost of living, the increased compensation limits may further encourage employees to pursue a claim in the tribunal. Employers may accelerate processes to avoid incurring extra payments being due before 6 April 2023, it is crucial that dismissal and redundancy processes remain fair and reasonable to avoid successful Tribunal claims.

Our team of employment lawyers have a wealth of experience to support in bringing or defending a claim in an employment tribunal, in addition to exploring alternatives such as negotiating a settlement; our team of expert HR Consultants can advise on managing dismissal and redundancy in the workplace, both of which are complemented by our tailored training and wellbeing offerings.

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