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Maximum compensation for unfair dismissal increases to £105,707

March 17, 2023

The Employment Rights (Increase of Limits) Order 2023 (SI 2023/318) has been laid before Parliament and will revise compensation limits for certain tribunal awards and other statutory payments from 6 April 2023. The statutory payments increases each year by refence the retail prices index (RPI). The new figures are based on the September 2022 which increased by 12.6% since the previous year, hence the jump in figures.

The Order includes the following new figures:

  • The maximum compensatory award for unfair dismissal increases from £93,878 to £105,707.
  • The limit on a week’s pay, which is used for redundancy calculations, increases from £571 to £643.
  • The minimum basic award for certain unfair dismissals (including health and safety dismissals) increases from £6,959 to £7,836.

In cases involving unfair dismissal, the new figures will apply where the effective date of termination is on or after 6 April 2023.

The material contained in this guide is provided for general purposes only and does not constitute legal or other professional advice. Appropriate legal advice should be sought for specific circumstances and before action is taken.

© Miller Rosenfalck LLP, March 2023