Increase in UK Compensation Limits From 6 April 2020

The government has announced new limits on certain employment tribunal awards and other amounts payable under employment legislation. The two key changes to be aware of are:

• The limit on the compensatory award for “ordinary” unfair dismissal will increase from £86,444 to £88,519
• The maximum amount of a week’s pay for the purposes of calculating statutory redundancy payments and the basic award in unfair dismissal claims will increase from £525 to £538

These new limits will apply to dismissals that take effect on or after 6 April 2020. 

Note that the cap on the compensatory award for “ordinary” unfair dismissal is the lower of the statutory limit set out above and 52 weeks’ pay of the individual concerned.