The government has announced the new compensation limits in Employment Tribunal cases.

In particular:

  • The cap on a week’s pay increases from £525 to £538 for dismissals which take place on or after 6th April 2020. The cap is applied when calculating statutory redundancy payments, as well as basic awards in unfair dismissal claims.
  • The maximum compensatory award (i.e. compensation for ongoing loss of earnings) in unfair dismissal claims will also increase from the lower of a year’s pay or £88,519 (it’s currently £86,444).