Tribunal Compensation Limits 2024
Following our article dated the 29.01.24 the new tribunal limits have now been released. The Employment Rights (Increase of Limits) Order 2024, is due to come into effect on 06 April 2024 which prescribes the annual increase in compensation limits for employment tribunal awards and other statutory payments. Our article dated the 29.01.24 covered all other statutory increases. A link to that article can be found here.
The increases made by the Order reflect the increase in the retail prices index of 8.9% from September 2022 to September 2023.
The statutory instrument makes the following increases:
- Limit on the amount of Compensatory Award for unfair dismissal claims – increases from £105,707 to £115,115;
- Maximum amount of “a week’s pay” for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal – increases from £643 to £700; and
- The minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons – increases from £7,836 to £8,533.
Such increases in the compensation limits will apply where the events giving rise to the entitlement to compensation or other payments (usually the effective date of an employees’ termination) occurred on or after 06 April 2024.
If the events giving rise to the entitlement to compensation or other payments falls before 06 April 2024, the old limits will still apply even if the date on which the compensation is awarded post-dates the 2024 order.
Employers should, however, note that whilst there is an increase in certain awards prescribed by the 2024 order, there are still exceptions whereby there is no limit on such awards e.g., discrimination or whistleblowing.
If you require any advice on the matters discussed in this article, please give our friendly employment team a call on 0114 266 6660, or click the contact us button to submit an online enquiry.
Published 05/05/24
