Employers to pay out more in tribunal payouts

Tribunal payouts
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Peninsula Team, Peninsula Team

(Last updated )

The Employment Rights (Increase of Limits) Order 2024 has been published to reflect the increase in the retail prices index (RPI) of 8.9% from September 2022 to September 2023

The Order means that new increased compensation limits for employment tribunal claims will come into force on 6 April 2024.

These include:

  • the maximum amount of a week’s pay increases from £643 to £700 with regard to calculating a statutory redundancy payment and unfair dismissal basic award
  • the maximum award for unlawful inducement relating to trade union membership or activities, or collective bargaining, goes up from £5128 to £5584
  • the limit on the amount of compensatory award for unfair dismissal rises from £105,707 to £115,115
  • the amount of guarantee payment payable to an employee in respect of a day of lay off increases from £35 to £38.

The increases apply where the event giving rise to the entitlement to compensation or other payment occurred on or after 6 April 2024.

The sums previously in force under the Employment Rights (Increase of Limits) Order 2023 are preserved by this latest Order in relation to cases where the relevant event took place before that date.

Visit BrAInbox today where you can find answers to questions like Do employees have to pay to make a tribunal claim?

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