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Increases to Tribunal Awards

A new Order has been placed before Parliament which will increase the maximum and minimum tribunal awards. The Order will come into force on 6 April 2018.

Legislation Changes

The Employment Rights (Increase of Limits) Order 2018 will, when in force, amend the compensation limits for certain tribunal awards. In particular:

  • The maximum compensation award for unfair dismissal will increase from £80,541 to £83,682 and will apply where the date of termination falls on or after 6 April 2018.
  • The minimum compensation award for certain unfair dismissal cases, such as those relating to trade membership activities and health and safety duties, will rise from £5,970 to £6,203 for claims where any date of termination falls on or after 6 April 2018.
  • In redundancy cases, the maximum limit on a week’s pay will also increase from £489 to £508, which will be the figure to use for any redundancy calculations made once the Order comes into force.

Any compensation awards made prior to 6 April 2018 or for dismissals that took place prior to this date will remain at the current levels.

Employment Tribunal Claims

There has been an increase in tribunal claims since fees were abolished in July 2017 according to the most recent tribunal statistics for the period of July-September 2017. The statistics show that, since the same period in 2016, the number of claims lodged by a single applicant increased by 64%.

Employers should be aware of the risks of litigation and expect an increase in employment claims. Updated statistics for the period of September-December 2017 should follow later this month, which will make interesting reading.