[UK] Annual increase to employment tribunal compensation limits

In the UK, annual increases to compensation limits in the Employment Tribunals are now in effect, Faegre Drinker reports.

The new rates will apply where the event giving rise to compensation (such as the termination of employment) happens on or after April 6, 2025. 

These are reportedly the most notable changes:

• The limit on a week’s pay, for the purposes of calculating statutory redundancy payments, and the basic award for unfair dismissal increased from £700 to £719.

• The maximum statutory redundancy payment and basic award for unfair dismissal increased from £21,000 to £21,570.

• The maximum compensatory award for unfair dismissal increased from £115,115 to £118,223 (or 52 weeks’ gross pay, if lower).

The bold figures are reportedly for Great Britain only. Different figures apply in Northern Ireland.

Source: Faegre Drinker

In the UK, annual increases to compensation limits in the Employment Tribunals are now in effect, Faegre Drinker reports.

The new rates will apply where the event giving rise to compensation (such as the termination of employment) happens on or after April 6, 2025. 

These are reportedly the most notable changes:

• The limit on a week’s pay, for the purposes of calculating statutory redundancy payments, and the basic award for unfair dismissal increased from £700 to £719.

• The maximum statutory redundancy payment and basic award for unfair dismissal increased from £21,000 to £21,570.

• The maximum compensatory award for unfair dismissal increased from £115,115 to £118,223 (or 52 weeks’ gross pay, if lower).

The bold figures are reportedly for Great Britain only. Different figures apply in Northern Ireland.

Source: Faegre Drinker