Tribunal rates and compensation limits from 6 April 2021
17 March 2021
From 6 April 2021 the rates and limits for employment claims will have their annual increase. The new rates will apply where the effective date of termination (EDT) of the employment of an employee is on or after 6 April 2021.
The limit on a week’s pay is relevant to employers’ calculations of statutory redundancy payments as well as for the basic award in unfair dismissal cases.
The new rates are as follows:
|Compensation limit||Current figure||From 6 April 2021|
|Maximum limit on a week’s pay||£538||£544|
|Maximum compensatory award for unfair dismissal||£88,519*||£89,493 *|
|Minimum basic award for specific types of unfair dismissals (including health and safety dismissals)||£6,562||£6,634|
* The maximum compensatory award has increased, but is also limited to a payment of 52 weeks’ pay, if that is lower than the maximum compensatory award.
If you are an employer with questions about your employee’s entitlements, or if you have questions about redundancy or unfair dismissal, then we can help. Please call us on 01243 836840 for a no obligation chat, or email us at [email protected].