Tribunal compensation limits: increased figures applying from 6 April 2021

From 6 April 2021, new increased compensation limits for employment tribunal claims will come into force, including a revised figure of £544 (currently £538) for the maximum amount of a week’s pay (used for calculating various awards including statutory redundancy payments and unfair dismissal basic awards), and a higher maximum unfair dismissal compensatory award of £89,493 (currently £88,519), under the provisions of the Employment Rights (Increase of Limits) Order 2021.

Employment Rights (Increase of Limits) Order 2021, SI 2021/208

What are the changes?

The revised figures, which come into force on 6 April 2021, are as follows:

• maximum amount of a week’s pay (used for calculating a redundancy payment and for various awards including the unfair dismissal basic award): £544 (increased from £538)
• limit on amount of unfair dismissal compensatory award: £89,493 (increased from £88,519)
• minimum amount of unfair dismissal basic award for trade union, health, and safety, working time representative, pension scheme trustee and employee representative dismissals: £6,634 (increased from £6,562)
• minimum amount for unlawful exclusion or expulsion from trade union: £10,132 (increased from £10,022)
• maximum guarantee payment per day: £30 (remaining the same)
• amount for unlawful inducement relating to trade union membership/activities or collective bargaining: £4,341 (increased from £4,294)

The increases made by this Order reflect the increase in the retail prices index of 1.9% from September 2019 to September 2020.

The maximum basic award for unfair dismissal will become £16,320 (up from £16,140). That makes the maximum total basic and compensatory awards for unfair dismissal £105,813 (up from £104,659) although the compensatory award is, of course, for dismissals on or after 29 July 2013, also subject generally to a limit of 52 weeks’ actual pay if that is less than the set statutory figure (currently £88,519 and increasing to £89,493).

The new limits apply where the ‘appropriate date’ is on or after 6 April 2021. The appropriate date varies according to the different types of claim; details are set out in article 4(2) of the Order.

Pro Employment Law

Formed in 2017, following significant legislative changes designed to increase competition within the legal services marketplace, Pro Employment Law is a progressive set of barristers’ chambers, consisting only of experienced employment law barristers, offering a full range of specialist advisory, case management, and advocacy services directly to the public through the Public Access scheme. We supply our legal services exclusively in the area of Employment Law to clients located across England & Wales. All of the legal services we supply are covered by professional indemnity insurance with Bar Mutual.