Annual increase in Employment Tribunal awards

The Employment Rights (Increase of Limits) Order 2018 has been laid before parliament, coming into force on 6 April 2018. It contains the normal annual increases to maximum and minimum tribunal awards.

Maximum tribunal awards

The key increases which employers should be aware of are:-

  • maximum week's pay (for redundancy payments and the unfair dismissal basic award): £508 (currently £489)
  • maximum compensatory award for unfair dismissal: £83,682 (currently £80,541)

Kate Fretten, Partner in Frettens' Employment Team, says "The value of any award made by a tribunal will vary according to the nature of the case. The amount of some awards are determined by law, although in certain circumstances, the tribunal can increase or decrease parts of an award. There are also awards that have to be calculated with some speculation influencing them. For example, if an employee successfully wins a claim for unfair dismissal, and is still unemployed at the time of the hearing, the tribunal will have to judge how much longer they may be out of work, and make an award accordingly."

At Frettens, all of our solicitors offer a free initial meeting or chat on the phone to answer your questions. If this article raises issues for you or your business, please call us on 01202 499255 and Kate or Paul will be happy to discuss it with you.