A bit later than usual, the Government has published its regular update to the limits that an Employment Tribunal can award in certain claims, as well as an increase to the upper cap to a "week's pay" for the purposes of statutory redundancy payments. 

Because of inflation over the last year, the increases to the limits, which apply to dismissals that take effect on are after 6 April 2023, are quite hefty. The key ones are -

  • The maximum compensatory award in an "ordinary" unfair dismissal claim has broken into six figures, rising from £93,878 to £105,707; and
  • The limit on a 'week's pay' for statutory redundancy payments rises from £571 to £643.

If you are planning a redundancy round, and the termination(s) will take effect on or after 6 April, then the increase in statutory redundancy payments should be carefully noted, or you will be paying the redundant employee too little.