The government has announced the annual increase in compensation limits for employment tribunal awards and other statutory payments that, subject to parliamentary approval, will take effect from 6 April 2024.
The two key increases are:
- maximum compensatory award for ordinary unfair dismissal: £105,707 to £115,115.
- limit on a week's pay: £643 to £700.
It is important to remember that the context of the above maximum compensatory award is, that the limit on compensatory awards is actually the lower of an amount equal to the employee's basic annual salary and the stated maximum.
The limit on weekly pay is applied in a number of contexts, including basic awards for unfair dismissal, statutory redundancy pay and awards of compensation that are made due to an employee not having been issued with written particulars of employment that comply with statutory minimum requirements.
The maximum possible basic award or statutory redundancy payment will therefore increase to £21,000.
Statutory guarantee pay, which applies when an employee is laid off or subjected to short-time working, will increase from £35 to £38 per day.
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