Employment Tribunal compensation limits and other statutory benefits, such as statutory redundancy pay, are increased annually and are declared by the government. The new rates will take effect on April 6, 2024, and they will be applicable to any related incidents that take place on or after that day. The Employment Rights (Increase of Limits) Order 2024, which takes effect on April 6, 2024, will implement the modifications.
What are the key changes?
Cap on a Statutory Week’s Pay – Increasing from £643 to £700
Cap on Statutory Redundancy Pay – Increasing from £19,290 to £21,000
Maximum Basic Award for Unfair Dismissal – Increasing from £19,290 to £21,000
Additional Award for Unfair Dismissal – Increasing from £16,718 to £33,436 to £18,200 to £36,400
Statutory Guarantee Pay – Increasing from £35 per day (subject to a maximum of five days or £175 in any three months) to £38 per day (subject to a maximum of five days or £190 in any three months)
Compensation for unfair dismissal – increase from £105,707 to £115,115
The higher rates are a reflection of the retail prices index’s 8.9% increase between September 2022 and September 2023.
What do these increases mean for employers?
Employers should be informed of the higher rates starting in April 2024, especially if there are any impending layoffs or reductions. It is also important for employers to know that starting in April 2024, there will be increases to the National Minimum Wage rates in addition to statutory benefits including shared parental leave, maternity, paternity, and sick pay.
To find out more about the Employment tribunal compensation increase and how it affects you,
Please feel free to get in touch with us by clicking one of the options below!
Book a call 01730 265500 Contact request form hello@robison.co.uk
