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:
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.
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