increase in compensation limits

There have been increases to the compensation limits for certain employment rights, as the Employment Rights (Increase of Limits) Order 2023 came into force.

The maximum amount for a week’s pay (for an unfair dismissal basic award and a statutory redundancy payment) increased to £643 (from £571).

The maximum compensatory award for unfair dismissal increased to £105,707 (from £93,878).

The minimum amount of unfair dismissal award for trade union, health and safety, working time representative, pension scheme trustee and employee representative dismissals increased to £7,836 (from £6,959).

The amount for unlawful inducement relating to trade union membership/activities or collective bargaining increased to £5,128 (from £4,554).

The uprated Vento guidelines (for injury to feelings awards in discrimination cases) have also been published. The new bands are:

• lower — £1,100 to £11,200 (less serious cases);

• middle — £11,200 to £33,700 (cases that don’t merit an award in the upper band); and

• upper — £33,700 to £56,200 (the most serious cases), with the most exceptional cases capable of exceeding £56,200.

This reflects the significant increase in Retail Prices Index inflation between September 2021 and September 2022.

These new limits apply where the “appropriate date” is on or after 6 April 2023 (such as dismissals occurring, or discrimination claims presented after that date).