New Compensation Limits for Employment Tribunal Claims

The Employment Rights (Increase of Limits) Order 2018 has been announced and increases the employment tribunal compensation limits that can be awarded in unfair dismissal claims.  The new limits will take effect from 6th April 2018 and mean that a finding of unfair dismissal could cost employers more.

About Employment Tribunal Compensation Limits

Employment tribunal compensation awards are reviewed annually and increased in line with inflation. The new limits for 2018/2019 are as follows:

  • maximum compensation limit for unfair dismissal increases to £83,682 (from £80,541)
  • maximum limit for one week’s pay when calculating unfair dismissal basic awards and statutory redundancy payments increases to £508 (from £489)

Since the abolition of employment tribunal fees, employers are subject to a greater risk of employment related claims.  They therefore should ensure that all managers and HR staff are fully trained to help mitigate the risks and handle grievance, disciplinary and dismissal issues accordingly.  Failure to follow procedure may have a significant financial impact to your business.

For more information regarding unfair dismissal claims or to find out what you need to do should the issue arise in your business, contact a member of our specialist employment team.

The Backhouse Solicitors Employment Team

Tel:         01245 893400

Email:    [email protected]

Web:      www.backhouse-solicitors.co.uk