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.
