The Employment Rights (Increase of Limits) Order 2018 has been laid before Parliament and will take effect from 6 April 2018, increasing the level of tribunal awards and certain other statutory payments.

  • The maximum limit for a statutory week’s pay (used to calculate statutory redundancy payments and the basic award for unfair dismissal) will increase from £489 to £508.
  • The maximum compensatory award for unfair dismissal will increase from £80,541 to £83,682.
  • The minimum basic award for certain automatically unfair dismissals will increase from £5,970 to £6,203.
  • Guarantee pay will increase from £27 to £28 per day.

In cases of dismissal, these new rates will take effect where the effective date of termination falls on, or after 6 April 2018. The increases are based on a 3.9% increase to the retail prices index (RPI) as at September 2017.