Alan McCormack | Senior Associate

Employment Law Update: Annual Increase to Employment Compensation Limits Announced

The new compensation limits for Employment Tribunal claims have been announced. The new limits, currently being approved by Parliament, will take effect from 6 April 2022. The key changes are:

  • the limit on a week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal increases from £544 to £571;
  • the maximum compensatory award for unfair dismissal will be the lower of 12 months’ salary or £93,878 (up from £89,493).

The new limits will apply to any dismissals occurring on or after 6 April 2022.

If you require further information about anything  covered in this update, please do not hesitate to contact our Employment Team today.

Alan McCormack

Alan McCormack

Employment Law Team

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