GOOD NEWS FOR EMPLOYEES

INCREASE IN EMPLOYMENT TRIBUNAL AWARDS

The statutory rate of a weeks pay is important for employers, employees and their advisers because it is used by Employment Tribunals to calculate:

  • A statutory redundancy payment, and
  • The basic and compensatory awards in unfair dismissal claims.

With effect from 6 April 2022 the statutory rate of a weeks pay will increase from £544 to £571

Thus the maximum awards payable to employees will increase if successful in an unfair dismissal claim:

  • the basic award will be £17,130 (up from £16,320), and
  • compensatory awards will be £93,878 (up from £89,493).

However, do remember that there is a maximum amount the Tribunal can award so the compensatory award in unfair dismissal claims is subject to a cap of a maximum of 52 weeks actual pay.

If you are an employer or employee and you need help on employment issues contact us now on 01606 74301 or email [email protected] or [email protected]