Increases in Employment Tribunal Claim Compensation
Annual increase in Employment Tribunal Compensation Limits – Statutory Redundancy Pay (‘SRP’) limits.
Annually the Government review and increase the compensation limits for Employment Tribunal claims, meaning the amount of compensation employees may be entitled to has increased. This also affects calculations for SRP.
The new figures include:
- The limit on the maximum compensatory award for unfair dismissal has increased from £105,707 to £115,115.
- The limit of weekly pay has been increased from £643 to £700 per week.
- The minimum basic award in some cases of unfair dismissal will increase from £7,836 to £8,533.
A full list of the increases can be found: The Employment Rights (Increase of Limits) Order 2024 (legislation.gov.uk)
The increased rates are due to come into force on 06 April 2024, subject to parliamentary approval.
What does this mean for your business?
Businesses will need to be aware of the effects of these changes, for example when looking at cases of redundancy and entitlement to a SRP.
In addition, if an employee submits an unfair dismissal claim their basic award may be impacted if their weekly earnings are above the current level of £643 per week but also other elements of their damages claim.
If you have any questions about these increases and how these might affect your business, or any other employment related matters, please speak with one of our Employment Law team on 01246 555 111 or contact:
Amy Hallam
Head of Employment
t: 0114 3496989
e: amy.hallam@brmlaw.co.uk
Ellie Leatherday
Associate
t: 01246 564002
e: ellie.leatherday@brmlaw.co.uk
Jade Taylor
Trainee Solicitor
t: 01246 560587
e: jade.taylor@brmlaw.co.uk
