Employers take heed: increase to national compensation limit for unfair dismissal

Employers who unfairly dismiss their employees on or after 6 April 2022 may need to dig a little deeper, as the maximum compensation payable to former employees successful in bringing a claim for unfair dismissal at the Employment Tribunal has increased.

The new maximum statutory rates, which employers could be on the hook for if they are unsuccessful in defending a claim for unfair dismissal, are as follows:

  • £571 for a week’s pay, used to calculate the basic award/a statutory redundancy payment (increase from £544, which applied to dismissals taking place between 6 April 2021 and 5 April 2022).
  • £93,878 for the maximum compensatory award or 52 weeks’ pay (increase from £89,493 which applies to dismissals taking place between 6 April 2021 and 5 April 2022).

If you are an employer or an employee with a query in relation to an unfair dismissal claim, or would like further advice relating to this article or anything employment-related, do not hesitate to contact our experienced team for hands-on, bespoke, specialist advice: employment@curzongreen.co.uk or by telephone.

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