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Compensation Limits Increase Once Again

  • Posted

Compensation limits which Employment Tribunals can award are set to be further increased with effect from 6 April 2017.

The changes apply to dismissals or other detriments, occurring on or after 6 April 2017 only. For anything which falls before this date, the old limits will still apply regardless of when the compensation (if successful) is awarded.

The main changes to the compensation limits are set out below:


Type of Compensation


Current Figure


Figure from 6 April 2017

Maximum compensatory award for unfair dismissal



Maximum cap on one week’s pay used to calculate basic awards and statutory redundancy payments



Minimum basic award for certain unfair dismissal i.e. health and safety or trade union reasons



Daily rate for guarantee pay




The new rates can be found in the Employment Rights (Increase of Limits) Order 2017.

If you require any further advice on this, or any other Employment law matter, please contact the Chattertons Employment law team at your nearest office.