Yearly Increase to Statutory Compensation Limits

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The Employment Rights (Increase of Limits) Order 2020 has just been laid before Parliament to increase the compensation limits for tribunal awards and statutory payments from 6th April, 2020.

The most significant increase to be aware of is the rise to a maximum week’s pay from £525 per week to £538 per week. This figure is used to calculate statutory redundancy pay figures, employee payments in the event of a business being insolvent and the unfair dismissal basic award.

Other increase include:
  • the maximum compensatory award for unfair dismissal rising from £86,444 to £88,519 or one year’s salary;
  • the amount of statutory guarantee pay rising from £29 to £30 per day.
These increases will be effective where the entitlement to the payment occurs on or after 6th April 2020 and in cases of unfair dismissal claims will apply for dismissal where the effective date of termination is on or after 6th April, 2020.

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