Statutory Compensation Limit Changes from 6th April 2023

From 6th April 2023, there will be new compensation limits for various employment-related rates and limits. This will include employment tribunal claims and other amounts payable under employment legislation.

The Employment Rights (Increase of Limits) Order 2023 will increase the maximum amount of a weeks pay from £571 to £643. This figure is used to calculate statutory redundancy pay and various other payments, such as the basic award for unfair dismissal.

Other increases include:

• The limit on the daily amount of statutory guarantee pay will increase from £31 to £35

• The minimum basic award for specific unfair dismissal cases, including but not limited to: due to trade union membership, due to carrying out activities relating to being a health and safety or employee representative will increase from £6,959 to £7,836.

• The maximum compensatory award for unfair dismissal will increase from £93,878 to £105,707.- (there is an additional cap of one year’s gross salary on the compensatory award)

These increases will be relevant where the event leading to the entitlement for compensation or other payments occurs on or after 6th April 2023. Otherwise, the previous amounts will apply.