Maximum and minimum awards in the Employment Tribunal will increase from 6 April 2017 in the following key ways:
- Unfair dismissal: cap on compensation awards rises from £78,962 to £80,541
- Basic award: minimum basic awards for automatically unfair dismissal (for health and safety, employee representative, trade union, or occupational pension trustee reasons) rises from £5,853 to £5,970.
- Week’s pay: cap rises from £479 to £489. This amount is used to calculate, for instance, redundancy pays and the basic award for unfair dismissal.
- Guarantee pay: rises from £26 to £27 per day. This rate is applied during times of lay-off or short-time working.
When do the new rates apply? The new rates will apply where the ‘appropriate date’ is on or after 6 April 2017. Broadly this is date of the illegal conduct, as opposed for instance to the date that the claim was brought or the date on which the financial award was made.