Employment Tribunal award limits increased

As the new tax year has started, most Employment Tribunal award limits increased on 6^th April 2026 in line with inflation:

1. Raised bands for injury to feelings awards: These new bands apply to new discrimination or detriment claims presented to a Tribunal on or after 6 April 2026:

a lower band of £1,300 to £12,600;

middle band cases £12,600 to £37,700;

upper band cases £37,700 to £62,900

With the most exceptional cases, the award can exceed £62,900.

The level of awards for successful existing claims are unaffected.

2. Compensation for claims (mainly) under the Employment Rights Act 1996 is going up, these claims are based from when the incident happens, not the date when the claim is brought:

(i) Unfair dismissal: The highest compensatory award (loss of earnings, pension and benefits) is either £123,543 or, if lower, 52 weeks pay for the employee, until 1st January 2027 when there will be no limit on the compensatory award.

(ii) Maximum Basic Award for unfair dismissal or statutory redundancy pay goes up to £22,530.

(iii) The maximum amount of a 'week's pay' for calculating awards goes up to £751.

(iv) The maximum award for not having a tips policy, or errors in records or not allocating tips fairly goes up to £5,366.

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