Increase in UK Compensation Limits from 6 April 2017

    View Authors February 2017

    The UK government has announced new limits on certain Employment Tribunal awards coming into effect on 6 April 2017. The two key changes to be aware of are: 

    • The limit on the compensatory award for "ordinary" unfair dismissal will increase from £78,962 to £80,541
    • The maximum amount of a week's pay for the purposes of calculating statutory redundancy payments and the basic award in unfair dismissal claims will increase from £479 to £489
    These new limits will apply to dismissals that take place on or after 6 April 2017.

    Note that the cap on the compensatory award for “ordinary” unfair dismissal is the lower of the statutory limit set out above and 52 weeks’ pay of the individual concerned.