Each year, a number of key employment law figures and compensation guidelines are updated following the annual statutory review process.
From 6 April 2026, revised Employment Tribunal compensation figures will apply, including an increase to the Vento bands (used in discrimination claims to assess awards for injury to feelings) and changes to statutory limits for unfair dismissal compensation.
Updated Vento Bands
Vento bands provide guidance to Tribunals on the level of compensation for “injury to feelings” in discrimination claims, depending on the seriousness of the case.
For claims presented on or after 6 April 2026, the Vento bands are:
- Lower band: £1,300 – £12,600 (for less serious cases).
- Middle band: £12,600 – £37,700 (for intermediate cases).
- Upper band: £37,700 – £62,900 (for the most serious cases).
Only in the most exceptional cases will awards exceed £62,900.
The appropriate band will depend on factors such as the nature of the discrimination, the impact on the individual, and the duration and severity of the treatment.
Unfair Dismissal Compensation Cap
The Employment Rights (Increase of Limits) Order 2026 will increase a number of statutory compensation limits and minimum payments from April 2026.
In particular:
- The cap on a week’s pay (used to calculate statutory redundancy payments and the basic award for unfair dismissal) will increase from £719 to £751.
- The statutory cap on the compensatory award for unfair dismissal will increase from £118,223 to £123,543.
The compensatory award reflects financial loss arising from dismissal and is subject to a statutory cap or the employee’s annual gross salary, if lower. It is awarded in addition to the basic award, which is equivalent to a statutory redundancy payment and is calculated by reference to the employee’s weekly pay.
These annual updates form part of the ongoing adjustment of employment law compensation limits and statutory payments, which may be relevant when considering claims and statutory entitlements.
If you wish to discuss this further or if you have any other employment law enquiries, please contact Rebecca Ellerbeck of Rowberrys on 01344 959166 or r.ellerbeck@rowberrys.co.uk.