Employment Law Update: Increase in statutory redundancy pay limit and maximum compensatory award

This Order will apply to increase the statutory redundancy pay limit and maximum compensatory award in the Employment Tribunal.

The increases apply where the event giving rise to the entitlement to compensation or other payment occurs on or after 6^th April 2022. For events that take place before 6^th April 2022, the sums previously in force under the Employment Rights (Increase of Limits) Order 2021 will apply.

The increases will be:

• Maximum amount for a week’s pay (basic award/redundancy payment): £571 (from £544)
• Maximum compensatory award: £93,878 (from £89,493)

These new limits will therefore apply to dismissals where the effective date of termination (EDT) occurs on or after 6^th April 2022 and relate to a variety of employment rights including:

• Statutory redundancy payments;
• the basic and compensatory awards for unfair dismissal; and
• the minimum basic award for unfair dismissal in certain cases such as health and safety matters.

If any of the points raised in this update are relevant to you or your organisation and you would like further legal advice, call the multi-awarded Employment team at Lupton Fawcett on 0330 191 043.