Employment Tribunal Compensation limits for redundancy and unfair dismissal claims are about to change.  Compensation limits are reviewed annually and are usually increased in line with inflation.

The new limits will come into effect on 6th April 2022. They will apply to dismissals occurring on or after that date, meaning that redundancies will become more expensive for employers and unfair dismissal claims could potentially cost more to defend.

New Compensation Limits

The new limits for 2022/2023 are as follows:

  • the maximum limit for one week’s pay when calculating unfair dismissal basic awards and statutory redundancy payments increases to £571 (from £544)
  • the maximum compensation limit for unfair dismissal increases to £93,878 (from £89,493)
  • the Employment Tribunal can also make a basic award up to a maximum of £17,130, bringing the total up to £111,008

For help and advice

It costs nothing to issue a claim in the Employment Tribunal but it can be costly to defend one.  It is vital to ensure that all managers and HR staff are trained properly to ensure they handle internal processes fairly.  Failure to follow proper procedure could carry significant financial and reputational risk to your business.

Contact us today for more information regarding unfair dismissal claims or to find out what you need to do if you are facing issues in your business.  We offer a free initial consultation with one of our friendly, expert employment solicitors for all new clients.

Tel:          01245 893400
Email:     [email protected]
Visit:       17 Duke Street, Chelmsford, CM1 1JU
Or send us a message through the Contact Us page on this website.