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Unfair dismissal award limits increase from 6th April


Employers should take note that the Employment Rights (Increase of Limits) Order 2017 comes into effect from 6th April. This increases (amongst other things) the maximum compensatory limit for unfair dismissals.


The changes of which employers should be aware are as follows:


The amount of compensation awarded for unfair dismissal was previously limited to £78,962. This has now been raised to £80,541.


When calculating a statutory redundancy award or for various awards including the basic or additional award for unfair dismissal, the tribunal puts a limit on the amount of a week’s pay that can be taken into account. This limit has now been raised from £479 to £489.


Where a dismissal has been ruled automatically unfair because of:

  • health and safety,

  • being a trustee of an occupational pension scheme,

  • being an employee representative,

  • because the claimant is a member of a trade union or the reason for their dismissal is involvement in trade union activities,


then there is a minimum basic award. This has now increased from £5,853 to £5,970.

Full details of the increases can be found here:

http://www.legislation.gov.uk/uksi/2017/175/schedule/made

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