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United Kingdom

UK: Increase in Tribunal Compensation Limits and Employment Rates

Authors: Robert Hill and Corinna Harris

Unfair dismissal awards and redundancy pay:

  • the limit on a week’s pay, for the purposes of calculating statutory redundancy and compensation for unfair dismissal, increases to £571 (from £544).
  • the maximum compensatory award for unfair dismissal increases to £93,878 (from £89,493).
  • the maximum statutory redundancy payment increases to £17,130 (from £16,320).
  • the minimum basic award for certain unfair dismissals (including health and safety dismissals) increases to £6,959 (from £6,634).

In cases involving unfair dismissals, the new limits will apply where the effective date of termination falls on or after 6 April 2022.

Other statutory rate increases:

  • National minimum wage – hourly rate (for age 23+) increases to £9.50 (from £8.91).
  • Statutory sick pay increases to £99.35 per week (from £96.35).
  • Family leave pay increases to £155.66 per week (from £151.97) or 90% of the employee’s average earnings, whichever is lower.

The Employment Rights (Increase of Limits) Order 2022

The Social Security Benefits Up-rating Order 2022