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From 6th April 2022, the Employment Rights (Increase of Limits) Order 2022 will take effect.

This will impact upon the sum that any employees are able to claim from an Employment Tribunal for numerous claims most notably claims for unfair dismissal.

The specific changes are as follows:

  • The cap on a weeks pay for calculation of both the basic award and a redundancy payment for those dismissed after 6th April 2022 will be £571, an increase from £544
  • The maximum compensatory award in claims for unfair dismissal will increase from £89,493 to £93,878

This change will not only impact those seeking to pursue a claim to the Tribunal but will also have the effect of potentially increasing redundancy payments for those dismissed after 6th April 2022 where the prior cap is exceeded by employee earnings as at the time of dismissal.