Trading as Powell Eddison Solicitors 
Trading as Avery Walters Ellis Solicitors 
The Annual Tribunal Limit Increases will be coming into force soon. These changes will come into effect from the 6th April 2023 (broadly, for dismissals taking place on or after that date) having been laid before parliament on the 15th March 2023. 
The limits apply to certain awards of employment tribunals, and other sums payable under employment legislation. The increases are made on an annual basis in line with the retail price index (RPI). The increases made by this Order reflect the increases in the retail prices index of 12.6% from September 2021 to September 2022. 
Changes enacted can relate to the setting of minimum rates such as those for statutory benefits like Statutory Sick Pay and the National Minimum Wage. 
Two key areas to highlight are:- 
• A ‘week’s pay’ (for basic award and redundancy payments) rises to £643 from £571. This is the maximum amount of a week's pay (used for calculating various awards including statutory redundancy payments and unfair dismissal basic awards) 
• Compensatory Award is now £105,707 having previously been £93,878. 
The following Schedule will apply: 
Relevant statutory provision 
Subject of provision 
Old limit 
New limit 
1 Section 145E(3) of the 1992 Act 
Amount of award for unlawful inducement relating to trade union membership or activities or for unlawful inducement relating to collective bargaining 
2 Section 156(1) of the 1992 Act(22) 
Minimum amount of basic award of compensation where dismissal is unfair by virtue of section 152(1) or 153 of 
the 1992 Act 
3 Section 176(6A) of the 1992 Act(23) 
Minimum amount of compensation where individual excluded or expelled from union in contravention of section 174 of the 1992 Act and not admitted or re-admitted by date of tribunal application. 
4 Section 31(1) of the 1996 Act 
Limit on amount of guarantee payment payable to an employee in respect of any day. 
5 Section 120(1) of the 1996 Act(24) 
Minimum amount of basic award of compensation where dismissal is unfair by virtue of section 100(1)(a) or (b), 101A(d), 102(1) or 103 of the 1996 Act. 
6 Section 124(1ZA)(a) of the 1996 Act(25) 
Limit on amount of compensatory award for unfair dismissal 
7 Section 186(1)(a) and (b) of the 1996 Act 
Limit on weekly amount payable to an employee, pro-rated where referable to a shorter period, in respect of a debt to which Part 12 of the 1996 Act applies and which is referable to a period of time 
8 Section 227(1) of the 1996 Act(26) 
Maximum amount of “a week’s pay” for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal. 
The 2023 No. 318 TERMS AND CONDITIONS OF EMPLOYMENT, Employment Rights (Increase of Limits) Order 2023 in full can be viewed by clicking here
For expert advice on employment law matters call our specialist Employment Law Solicitors today on 01423 564551 or email us on infopowell-eddison.co.uk. Click here to read more. 
Tagged as: Employment Law
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