There are limits which are applied to certain awards which are made by the Employment Tribunals.
What are the key changes?
The key change is the increase in the amount of the compensatory award for an unfair dismissal claim which rises from £89,493 to £93,878. The maximum amount of “a week’s pay” for the purpose of calculating a redundancy payment or for other awards, for example, the basic award in an unfair dismissal claim, will also rise from £544 to £571.
What is taken into account when making an increase?
The increases are based on the retail prices index (“RPI”) and reflects an increase of 4.9% in the index from September 2020 to September 2021.
When will the changes take effect?
The relevant increases in the limits will come into force with effect of 6th April 2022. This will mean that the increased limits will apply to compensation or other payment arising as a result of an event which occurs on or after 6th April 2022.
If you would like to discuss any of the issues in this blog, please contact us.
