Annual increase in employment tribunal compensation limits

From 6 April 2022 the rates and limits for employment tribunals will have their annual increase.  The new rates will apply where employees’ effective date of termination (EDT) is on or after 6 April 2022.

The limit on a week’s pay is also relevant to employers’ calculations of statutory redundancy pay as well as for the basic award in unfair dismissal cases.

This year's core compensation limit increases are:

•  a week's pay - £571 (from £544)
•   maximum compensatory award - £93,878 (from £89,493) *

* This is limited to a payment of 52 weeks’ gross pay (if lower than the maximum compensatory award).