From 6th April 2023, new increased compensation limits for employment tribunal claims will come into force for dismissals that happen on or after that date.
The key increases are:
- a higher maximum compensatory award for unfair dismissal – £105,707 (previously £93,878)
- the maximum amount of a week’s pay for statutory redundancy payments and unfair dismissal awards – £643 (previously £571)
The changes take effect from 6 April 2023 (for dismissals taking place on or after that date).
Under section 34(2) of the Employment Relations Act 1999, if the retail prices index for September of a year is higher or lower than for the previous September, the Secretary of State is required to change the specified sums by the same percentage of the increase or decrease. The retail prices index rose by 12.6% from September 2021 to September 2022 hence the rise of 12.6% in the compensatory awards.