The Employment Rights (Increase of Limits) Order 2023 has been published, which details the annual increase for awards at the employment tribunal. These changes will come into force on 6 April 2023. They include:
- Compensatory Award – £105,707 (was £93,878)
- A ‘week’s pay’ (used when calculating basic award and redundancy pay) – £643 (was £571)
The rise for unfair dismissal compensation has increased by £12,000 which is a considerable rise in comparison to previous years. These increases will have the impact of increasing the costs for employers when they are unsuccessful at tribunal, when looking to settle a claim, or when making redundancies. This means the highest award a long-serving employee could receive if they were to be successful in an unfair dismissal claim is circa £125,000.
If you require legal advice or representation at the Employment Tribunal, our Legal & HR Team are happy to assist with this.
