Annual Employment Tribunal limit increase 2023
Employers in the UK should take note of the latest update to employment tribunal limits.
The Employment Rights (Increase of Limits) Order (SI 2023/318) provides that from the 6 April 2023 certain awards in the employment tribunal will increase which are based on the September 2022 which increased by 12.6% from the previous year.
Stacey Cox, director and head of Employment Law and HR Services, looks at the annual changes.
This article covers:
- Week's Pay changes
- Compensatory Award changes
- Unfair dismissal changes
- Why the increase?
- When do the changes come in?
- Your next move?
Week's Pay changes
The maximum amount of a 'week's pay' used to calculate statutory redundancy pay and the basic award for unfair dismissal claims will increase from £571 to £643. This is an increase of £72 per week. Therefore, if an employee is made redundant, their statutory redundancy pay will be calculated using a 'week's pay' of up to £643.
Compensatory Award changes
The maximum compensatory award for unfair dismissal claims increases from £93,878 to £105,707 – meaning an increase of £11,829.
Therefore, if an employee successfully claims unfair dismissal, the maximum amount of compensation they can receive will be £105,707. The amount awarded is based on the individual circumstances of the case and may be lower than the maximum.
Unfair dismissal changes
The minimum basic award for certain unfair dismissals (including health and safety dismissals) increases from £6,959 to £7,836, an increase of £877.
Why the increase?
The annual increase in tribunal limits is based on the Retail Prices Index (RPI) inflation rate from September of the previous year. The RPI inflation rate for September 2022 was 5.1%, which has led to increased tribunal limits.
When do the changes come in?
The new rates will be applied from 6 April 2023 to dismissals taking place on or after that date.
Your next move?
Our employment team are always on hand to help with a claim or with any employment law query in general.
Please call 0114 224 6660 to speak to a member of our employment team.
Find out more about Employment Law services
Published 31/03/23
