Employment tribunal compensation limits increase from 6 April


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Posted on 01 Mar 2022

Employment tribunal compensation limits increase from 6 April

Increase to employment tribunal compensation

Legislation setting the annual increase in employment tribunal compensation limits has been laid before Parliament.  

The maximum compensatory award for unfair dismissal is set to increase to £93,878 (up from £89,493).  Note that there is no statutory cap on compensation if an employee is dismissed for whistleblowing or for carrying out health and safety activities.

The maximum rate of a week’s pay, used for calculating statutory redundancy payments, the basic award for unfair dismissal and certain other tribunal awards, will increase to £571 (up from £544).

The new rates will apply where the effective date of termination of an employee’s employment (or other calculation date) is on or after 6 April 2022. 

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