Rates and Limits for Employment Tribunal compensation are increased every year from 6th April. The new rates will apply where your effective date of termination (EDT) is on or after 6 April of the year you are making your claim.
A Weeks Pay
The statutory limit on a weeks pay is et out in section 227 of the Employment Rights Act 1996 (ERA 1996). It is adjusted annually by the Secretary of State in line with Retail Price Index (RPI) under a formula in section 34 ERA 1996. The limit is raised every year on 6th April in line with any annual increase in RPI measured the previous September. Where THE RPI does not change, the limit remains the same. The rate from 6 April 2023 is set by the Employment Rights (Increase of Limits) Order 2023 (SI 2023/318) and applies when calculating statutory redundancy payments as well as the basic award for unfair dismissal. The maximum limit on a week’s pay when calculating redundancy pay and the basic award in unfair dismissal is £643. This means that if your pay is more than £643 a week, it will be reduced to that amount for calculating a redundancy payout or the basic award in an unfair dismissal claim.
- The basic award for unfair dismissal is calculated according to a formula based on your age, length of service and weekly pay under section 119 ERA 1996. The maximum that can be awarded under the formula is 30 weeks' pay. Your weekly pay is subject to the statutory limit on a week's pay. The maximum basic award is £19,290
- The compensatory award in the vast majority of unfair dismissal cases is subject to a statutory upper limit or "cap" under section 124(1) ERA 1996. The cap is adjusted annually by the Secretary of State according to a formula set out in section 34 of the Employment Relations Act 1999. The maximum compensatory award is £105,707 or your annual pay, whichever is lower.
- Maximum total compensation for unfair dismissal is £124,997 [basic award + compensatory award]
- If your employer does not comply with an order to reinstate or re-engage you, the Employment Tribunal may order them to pay an additional award. The Employment Tribunal can order minimum and maximum amounts which are calculated by reference to the statutory limits on a week's pay. The minimum order will be the lower of 26 weeks' pay or £16,718, and the maximum order will be the lower of 52 weeks' pay or £33,436.
Failure to provide a written statement of employment particulars (Section 1 Statement)
The Employment Tribunal can award two weeks pay if your employer fails to provide a written statement of employment particulars (section 1 ERA 1996) or fails to amend the written statement following any changes (section 4 ERA 1996), You can only make a claim under this head as an additional claim. It is not a standalone claim and must be made with a claim listed under Schedule 5 of the Employment Act 2002 (EA 2002). If the Employment Tribunal believes it just and equitable to do so, it can make an award equivalent of four weeks pay under section 38 of the Employment Act 2002 (EA 2002). Both awards are subject to the statutory liit on a week's pay.
- The limit on two weeks pay is £1286
- The limit on 4 weeks pay is £2572
Injury to feelings
Injury to feelings can be claimed in discrimination and whistleblowing claims. The Employment Tribunal will award an amount to compensate you for injury to feelings caused by your employer's discriminatory conduct. Injury to feelings includes upset, frustration, worry, anxiety, mental distress, fear, grief, anguish, humiliation, stress and depression. This is why you must state whether you have suffered from any of these effects in your claim. Injury to feelings awards are based on three bands known as the Vento Bands. These are laid out in the Vento Guidelines, first established in the case of Vento v Chief Constable of Yorkshire Police (2003). The Vento Bands are updated every year.
Vento Bands 6th April 2023-5th April 2024
- Lower Band: £1100-£11,200 (less serious cases);
- Middle Band: £11,200 - £33,700 (cases that do not merit an award in the upper band); and
- Upper Band: £33,700 - £56,200 (the most serious cases).
- Above Upper Band: The Employment Tribunal can award more than the upper band in exceptional circumstances.
Breach of your right to be accompanied
You can make a claim if your employer failed, or threatened to fail, to comply with your right to be accompanied to a disciplinary or grievance hearing. If you are successful, the Employment Tribunal can award a maximum of two weeks’ pay (subject to the limit on a week’s pay).
The limit on 2 weeks pay is £1286
See also right to be accompanied
Breach of Flexible Working Regulations
After at least 26 weeks of continuous employment, you can apply to your employer for flexible working arrangements.
If your employer;
- Fails to deal with your application in a reasonable manner.
- Fails to notify you of the decision on your application within the decision period.
- Fails to rely on one of the statutory grounds when refusing your application.
- Bases the decision on incorrect facts.
- Treats your application as withdrawn when the grounds entitling your employer to do so do not apply.
The Employment Tribunal can order your employer to pay you a compensatory award of up to eight weeks pay - maximum £5,144 under Regulation 6 of the Flexible Working Regulations,
In addition, the Employment Tribunal must make a declaration, and can also order your employer to reconsider your request.
Inducements related to trade union activities or collective bargaining
An employer who makes any offer to an employee to induce them to give up (or take up) union membership, or to give up union activities, services or collective bargaining is acting unlawfully under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA 1992), sections 145A and 145B. The Employment Tribunal must make a mandatory award of £5,128 if your claim is successful (TULRCA 1992, section 145E).
Refusal of employment on grounds of union membership
An employer who refuses to employ someone because they are a member (or are not a member) of a trade union, or because they refuse to join or leave a trade union is acting unlawfully. It is also unlawful for an agency to refuse employment services for these reasons. The Employment Tribunal can award compensation on the same basis as damages for breach of statutory duty, and this may include compensation for injury to feelings, as well as financial loss (TULRCA 1992 section 140(1)(a) & 2).
The upper limit is the same as the compensatory award for unfair dismissal [TULRCA 1992, section 140(4)].
Maximum award: £105,707 or your annual pay, whichever is lower
There is no minimum award.
Unjustifiable discipline by a union
If you are unjustifiably disciplined by your trade union, you can bring a claim against the union in an Employment Tribunal . The award is the same as in unfair dismissal.
Maximum Award: £124,997
There is no minimum award.
Exclusion or expulsion from a union
If you are unlawfully excluded or expelled from your union, you can bring a claim against the union in the Employment Tribunal . If your claim is successful the Employment Tribunal must award a minimum amount of compensation [TULRCA 1992, section 176(6A)].
Minimum Award: £11,967
Maximum Award: £124,997
If you are made redundant after two years continuous employment, you are entitled to a statutory redundancy payment which is calculated in the same way as the basic award for unfair dismissal. The formula is in section 162 ERA 1996. The maximum amount of a statutory redundancy payment is £19,290
Failure to inform or consult on collective redundancy
The maximum protective award for failure to inform or consult over a collective redundancy is 90 days gross pay per dismissed employee – section 189 TULR(C)A 1992. There is no statutory limit or minimum award.
Maximum Guarantee Payments
Under section 31(1) ERA 1996, you may be entitled to a statutory guarantee payment if you are laid-off or on short-time working. The formula for calculation is in section 34 of the Employment Relations Act 1999, and the yearly rate is given by the Social Security Benefits Uprating Order 2023. It is calculated by multiplying the number of normal working hours on the workless day by the guaranteed hourly rate. Statutory guarantee payments are subject to a maximum daily limit of £31 a day, subject to a maximum of five days or £150 in any three months.
See also Lay-offs and Short-time working
Last Updated: [11/04/2023]