In recent weeks, the government announced the changes to compensation limits and the maximum weeks’ pay for calculating redundancy payments and tribunal awards. The Employment Rights (Increase of Limits) Order 2022 sets out the increased limits and maximums which has taken effect from the 6th April 2022. These limits are reviewed each year and are generally updated with the retail price index (RPI).
As leading employment law specialists, we have compiled all the information you should know:
Changes to compensation limits and maximum weeks’ pay 2022.
The notable increases for compensation limits and maximum weeks’ pay from April 2022, include:
- The limit on a week’s pay for calculating redundancy and the unfair dismissal basic award has increased from £544 to £571.
- The increase to a week’s pay means that the maximum basic award for statutory redundancy payment and unfair dismissal is now £17,130, up from £16,320.
- The maximum compensatory award for unfair dismissal has increased to £93,878, or a year’s pay (whichever is lower).
These changes mean that the most that an employment tribunal could award for an unfair dismissal (totalling the maximum basic and compensatory award), has increased to £111,008.
These new limits relating to dismissal compensation will apply for any dismissals where the date of termination is on (or after) the 6th April 2022. Any dismissals that took place prior to this date will have the previous limits applied to any award. It should be noted that there is no maximum compensation award for discriminatory dismissals, so these could lead to a higher financial penalty if awarded.
If you would like to learn more about these changes – whether you’re an employer or employee seeking advice on redundancy or dismissal, why not consider getting in touch with the employment experts here at Rowberrys?
Contact us for redundancy advice today.
If you’re an employer, it’s vital to ensure that you have all your processes and procedures in place to avoid penalties as a result of an employment tribunal. Similarly, if you’re an employee, it’s very important that you get all the money you're owed if you're being made redundant.
To speak to a employment law solicitor specialising in redundancy advice (or any other area of employment law), please do not hesitate to give us a call on 01344 959166