Increase to Tribunal Award Limits Effective from 6 April 2025
- 21 March 2025
- Employment
As of 6 April 2025, the Employment Rights (Increase of Limits) Order 2025 will increase the compensation limits which apply to various Employment Tribunal awards as well as other statutory payments. These adjustments reflect the annual review based on the Retail Prices Index (RPI) and aim to ensure that compensation remains fair and relevant in the context of economic changes.
Limit on a Week’s Pay:
Maximum Compensatory Award for Unfair Dismissal:
Minimum Basic Award for Certain Unfair Dismissals:
Limit on Compensatory Awards regarding Tips:
As of 6 April 2025, the Employment Rights (Increase of Limits) Order 2025 will increase the compensation limits which apply to various Employment Tribunal awards as well as other statutory payments.
These changes will apply where the event giving rise to the compensation or statutory payment (the effective date of termination), falls on or after 6 April 2025. For employers, these changes mean that the cost of dismissals and redundancy payments will increase. This will be particularly significant to employers having to considering redundancies after 6 April 2025, who will need to factor in these increased statutory redundancy payments for employees with over two years’ service.
For employees, the increase in tribunal award limits is generally positive. Higher compensation limits mean that employees who are unfairly dismissed or made redundant will receive more substantial financial awards. This can provide greater financial security and support during periods of unemployment.
Employees should be aware of their rights and the new compensation limits when negotiating settlements or pursuing claims. Understanding these changes can empower employees to seek fair compensation and ensure that they are adequately compensated for any unfair treatment or dismissal.
Please do not hesitate to contact a member of our employment team who will be happy to help.
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Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.