06 April 2021
Employment Tribunal compensation limits are a useful tool for both employers and employees in valuing potential claims for redundancy and unfair dismissal and weighing up the risks involved.
The limits increase each tax year in line with inflation and, for example, redundancies after 6 April 2021 will cost employers more.
The following key changes come into force today for dismissals effective from 6 April 2021:
| CLAIM | OLD LIMIT |
NEW LIMIT FROM 6 APRIL 2021 |
|
Limit on amount of compensatory award for unfair dismissal* |
£88,519 | £89,493 |
|
A week’s pay for calculating statutory redundancy pay and the basic award for unfair dismissal |
£538 | £544 |
*The maximum compensatory figure is also limited to the value of 52 weeks’ pay, if that is lower. The limit does not apply, for example, where the reason for dismissal or redundancy selection is carrying out health and safety activities or making a protected disclosure.
Click here for information on further increases please click here.
Please get in touch with our Specialist Employment team if you would like to discuss any of the above or are looking for more information.
Caroline Carr, Partner & Accredited Specialist:cac@bto.co.uk / 0141 225 5263
Laura Salmond, Partner & Accredited Specialist: lis@bto.co.uk / 0141 225 5313
Douglas Strang, Senior Associate: dst@bto.co.uk / 0141 225 5271