New Employment Tribunal compensation limits announced

Every year there is an increase in the limits on certain Employment Tribunal awards and other amounts payable under employment legislation.More change is already on the horizon

From the 6 April 2014, the following notable changes will take effect:

• the limit on the amount of a week’s pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal will increase from £450 to £464
• the maximum compensatory award for unfair dismissal goes up from £74,200 to £76,574. There is however (since 29 July 2013) a cap of one year’s salary on the compensatory award for unfair dismissal. The increase will therefore only be applicable were an employee is earning in excess of £76,657.

It should be noted that where the dismissal falls before 6 April, the old limits will still apply.

Employment Tribunal Fees Update

It also looks like Employment Tribunal and Employment Appeal Tribunal fees are here to stay. Earlier this month the High Court rejected Unison’s judicial review challenging the introduction of fees.

Since the introduction of fees on the 29 July 2013, the number of claims at the Employment Tribunal has significantly reduced.

This article was written by Alex Pearce, a Solicitor and member of our Employment Team. This article is only intended to provide a general summary and does not constitute legal advice. Specific legal advice should be taken on each individual matter. This article is based on the law as at February 2014.