Annual increase in compensation limits arrives

Employment Law, For Employees, For Employers

The government has announced the annual increase in compensation limits for Employment Tribunal awards and other statutory payments.

The main changes are as follows:

  • Maximum compensatory award is up from £105,707 to £115,115 (for unfair dismissal claims only).
  • Minimum basic award is up from £7,836 to £8,533 (for some forms of unfair dismissal).
  • Limit on a week’s pay is up from £643 to £700 (used when calculating redundancy and basic pay).

These changes are subject to parliamentary approval. The new limits will apply to claims brought on or after 6 April 2024 and not before.

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Please note this blog is for reference purposes only and is only accurate at which the date it was published. It does not constitute legal advice and should not be relied upon as such. Specific Legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any actions. Please contact us if you have any questions on

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