Kate Brooks
Partner, Solicitor & Head of Employment/HR Services
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Date Published:09 Mar 2016 Last Updated:22 Sep 2021

Increase in tribunal compensatory awards – April 2014

Employment Law Advice

As of 6 April 2014 there will be an increase in the statutory compensation limits that an employment tribunal can award.

The maximum compensatory award for ordinary unfair dismissal claims will increase to £76,574 (from £74,200). This will remain subject to the additional cap of a year’s pay, should this figure be lower than £76,574.

The maximum amount for a week’s pay will rise from £450 to £464, which is used to calculate statutory redundancy payments or other awards i.e. the basic award of compensation for unfair dismissal.

The new rates will be applicable if the effective date of termination falls on or after 6 April 2014 in cases involving dismissal. However, as for dismissals prior to 6 April 2014 the old rates still apply.

The changes to these compensatory figures were revised in order to reflect the Retail Price Index (RPI) increase of 3.2% for the year ending September 2013 and will come into force on 6 April 2014, upon the implementation of the Employment Rights (Increase of Limits) Order 2014.

Type of compensation Current figure From 6 April 2014
The maximum compensatory award which a tribunal can make in unfair dismissal claims £74,200 £76,574
Maximum limit on a week’s pay (used for the purpose of calculating statutory redundancy pay and basic awards in unfair dismissal claims) £450 £464
The minimum basic award for other unfair dismissals (due to health and safety duties, for reasons of trade union membership, occupational pension scheme trustee reasons or acting as an employee representative) £5,500 £5,676
Maximum statutory redundancy payment £13,500 £13,920
Daily rate of guarantee pay £24.20 £25

Should you wish to discuss these changes, please do not hesitate to contact me on 01202 636210 or kate.brooks@ellisjones.co.uk.