Employment tribunal compensation to increase in April

Employment tribunal compensation to increase in April

Unfair dismissal, redundancy and discrimination compensation limits will increase from April, with increases larger than usual due to higher levels of inflation.

Unfair dismissal and redundancy

The limit on a week's pay, used for calculating statutory redundancy payments and the basic award for unfair dismissal, will increase from £571 to £643. The maximum compensatory award for unfair dismissal will increase from £93,878 to £105,707. The new rates will apply where the effective date of termination of employment is on or after 6 April 2023.

Discrimination – injury to feelings

The Vento bands for injury to feelings compensation will increase for claims presented on or after 6 April. The new bands will be:

• Lower band (for less serious cases) - £1,100 to £11,200
• Middle band (for cases which do not merit an award in the upper band) - £11,200 to £33,700
• Upper band (for the most serious cases) - £33,700 to £56,200
• Amounts in excess of £56,200 can be awarded in the most exceptional cases

Injury to feelings compensation is also awarded in claims for detrimental treatment, for example, on grounds of whistleblowing, and the increased bands will apply to these claims too.