The Government has announced this year’s annual increase to Employment Tribunal compensation limits and other statutory payments, including statutory redundancy pay. The increased rates will come into force on 6 April 2024, and will apply to any relevant events occurring on or after that date.
The changes will be brought about by The Employment Rights (Increase of Limits) Order 2024, which comes into force on 6 April 2024.
Some of the key increases are as follows:
| New Rate from 6 April 2024 | Previous Rate from 6 April 2023 | |
Cap on a Statutory Week’s Pay (used for calculating various awards, including statutory redundancy pay and unfair dismissal basic awards) |
£700 |
£643 |
Cap on Statutory Redundancy Pay
|
£21,000 |
£19,290 |
Maximum Basic Award for Unfair Dismissal
|
£21,000 |
£19,290 |
Maximum Compensatory Award for Unfair Dismissal
|
£115,115 (or a year’s gross pay, whichever is lower) |
£105,707 (or a year’s gross pay, whichever is lower) |
Additional Award for Unfair Dismissal (where an employer does not comply with a re-instatement or re-engagement order) |
£18,200 to £36,400 |
£16,718 to £33,436 |
Statutory Guarantee Pay |
£38 per day (subject to a maximum of five days or £190 in any three months) |
£35 per day (subject to a maximum of five days or £175 in any three months) |
The increased rates reflect the increase in the retail prices index of 8.9% from September 2022 to September 2023.
Paula Bailey comments: “Employers should be aware of the increased rates from April 2024, particularly were any redundancies or dismissals are in the pipeline. Employers should also be aware that April 2024 will bring increases to the National Minimum Wage rates, as well as to statutory sick pay, maternity pay, paternity pay, adoption pay, shared parental pay etc. We will shortly be producing Howes Percival’s popular ‘facts and figures’ document containing all of the up-to-date rates, so make sure to keep your eyes peeled!”
If you need any further information or assistance on the above, please contact a member of the team here.
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