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Limits on Tribunal Awards and Statutory Payments to Increase from April 2017

The Employment Rights (Increase of Limits) Order 2017 (the Order) has been laid before Parliament.  The Order increases the limit applying to certain awards of employment tribunals, and other amounts payable under employment legislation from 6 April 2017.

Notable changes include:

  • an increase to the limit on compensation for unfair dismissal from £78,962 to £80,541
  • the limit on a week’s pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal, will increase from £479 to £489
  • guarantee pay will increase from £26 to £27 per day
  • 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 will increase from £5,853 to £5,970.

The new rates take effect where the ‘appropriate date’ for the cause of action (such as the date of termination in an unfair dismissal claim) falls on or after 6 April 2017. Where the appropriate date falls before 6 April, the old limits will still apply, irrespective of the date on which compensation is awarded.

The increases are based on the September RPI which increased by 2.0% since the previous year.

This bulletin is for general guidance purposes only and should not be used for any other purpose.

Brabners is a Limited Liability Partnership