Legal update – Increase to Tribunal Awards

30 March 2023

The Employment Rights (Increase of Limits) Order 2023 has been published, which details the annual increase for awards at the employment tribunal. These changes will come into force on 6 April 2023. They include:

• Compensatory Award – £105,707 (was £93,878)
• A ‘week’s pay’ (used when calculating basic award and redundancy pay) – £643 (was £571)

The rise for unfair dismissal compensation has increased by £12,000 which is a considerable rise in comparison to previous years. These increases will have the impact of increasing the costs for employers when they are unsuccessful at tribunal, when looking to settle a claim, or when making redundancies. This means the highest award a long-serving employee could receive if they were to be successful in an unfair dismissal claim is circa £125,000.

If you require legal advice or representation at the Employment Tribunal, our Legal & HR Team are happy to assist with this.