Unfair Dismissal Compensation Increase

Unfair Dismissal Compensation Increase

We have often cautioned employers of domestic and household staff of the potential dangers of taking staff dismissal decisions without relevant professional advice as the consequence of getting it wrong can be expensive

Now, the potential cost of losing an Employment Tribunal claim for unfair dismissal is increasing further.

The government recently announced new higher limits on certain tribunal awards under employment legislation.

The key changes are that for those dismissals that take effect on or after April 6th 2021, the limit on a  compensatory award for “ordinary” unfair dismissal will increase from £86,444 to £88,519

The maximum amount of a week’s pay for the purposes of calculating statutory redundancy payments and the basic award in unfair dismissal claims will increase from £525 to £538.

Prior to this the  statutory cap  was £88,519, or 52 weeks gross salary, whichever the lower.


The Graham Agency, keeping you informed.