When are increases in compensation limits for employment tribunal awards and other statutory payments to take effect in 2024?
The Answer
Under provisions of the Employment Rights (Increase of Limits) Order 2024, the Government has announced increases to compensation limits that will apply for employment tribunal awards and other statutory payments for 2024.
The Threat/Risk
The Ministry of Justice (MoJ) regularly publishes quarterly updates for cases brought to, heard and disposed of before the Employment Tribunal (ET) and for the quarter for April to June 2023 there were 4083 claims for unfair dismissals, with disability discrimination claims for 2022/23 having received the largest average award in sum of £45,000 in comparison to other discrimination claims, thus employers must ensure that they follow correct procedures when addressing employee issues so as to avoid employees bringing successful financial claims.
What You Need To Know
The weekly pay cap to calculate statutory redundancy pay, tribunal awards for unfair dismissal and additional awards - ranging from 26 to 52 weeks' of pay, will increase from £643 to £700 gross from 6 April 2024. Further, maximum compensatory award for unfair dismissal will increase from £105,707 to £115,115,there being an alternative option of awarding one year’s gross salary, whichever is the smaller amount. These changes represent an 8.9% increase, reflecting the increase in the retail prices index.
Dismissals linked to trade union membership or activities or for carrying out health & safety obligations or related to being involved as an occupational pension trustee will go up from £7,836 to £8,533. There are no financial limits on what a tribunal can award for discrimination claims falling within sex, race, sexual orientation, disability, age, religion, and belief. Also, there is no financial limit on an award for dismissal related to making a whistleblowing disclosure and dismissals related to health & safety concerns.
Please note that increases only apply to financial awards on matters arising on or after 6 April 2024. Hence, 2023 limits would still apply where the event takes place before 6 April 2024. If you require any further assistance, please do not hesitate to contact our HR/Legal advice line team at 01455 852 028.
