The Cost Of Losing Goes Up

We have reported recently, the massive rise in cases being taken to Employment Tribunal fees were ruled unlawful.

Claims up 90%, Multiple employment tribunal claims up by 467% and

now, for employers, the cost of losing an appeal has shot up. From 6th April this year, the maximum compensation award for an unfair dismissal has further increased, with the maximum award, an eye-watering £80,541.

Employment tribunal compensation awards are increased each year in line with inflation, based on the September RPI figure

The maximum amount of a ‘week’s pay’ – used to calculate statutory redundancy pay and various other payments (e.g. the basic award for unfair dismissal) – has increased from £489 to £508.

The maximum compensatory award for unfair dismissal rises from £80,541 to £83,682. The upper limit remains the lower of a year’s salary or the maximum statutory limit.

The limit on the daily amount of guarantee payments increases from £27 to £28 per day.

The minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons increases from £5,970 to £6,203.

The new rates apply where the event giving rise to compensation or payment occurs on or after 6 April 2018.

We stress, as always, employers should take appropriate professional advice before making any decisions relating to employment issues.

We stress, as always, employers should take appropriate professional advice before making any decisions relating to employment issues.

The Graham Agency, keeping you informed.

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