The Government has published new legislation (the Employment Rights (Increase of Limits) Order 2019) setting out the annual increases in compensation payments that may be paid by employment tribunals.

SI 2019 No. 324 can be found on the legislation.gov.uk website and is due to come into force on 6 April 2019.

The increases made by this Order reflect the increase in the Retail Prices Index (RPI) of 3.3% from September 2017 to September 2018. They apply where the event giving rise to the entitlement to compensation or other payments occurred on or after the above date.

The limit on the amount of compensatory awards for unfair dismissal will rise from £83,682 to £86,444.

Other significant changes will see the cap on a week’s pay for redundancy and tribunal claims rise from £508 to £525 while the limit on the guarantee payment payable to an employee in respect of any one day goes up to £29 from £28.

Note:

Where a relevant event occurred before 6 April 2019, the limits in force under the 2018 Order (SI 2018 No. 194) will apply and are therefore preserved by the latest legislation.

Last reviewed 22 February 2019