Annual compensation awards – increase of limits

27 February 2017

 

The Employment Rights (Increase of Limits) Order 2017 increases, from 6 April 2017, the limits applying to certain awards of employment tribunals, and other amounts payable under employment legislation, as specified in the Schedule to the Order (table below).

 

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.

 £3,830

 £3,907

2.    Section 156(1) of the 1992 Act(1)

Minimum amount of basic award of compensation where dismissal is unfair by virtue of sections 152(1) or 153 of the 1992 Act.

 £5,853

 £5,970

3.    Section 176(6A) of the 1992 Act(2)

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.

 £8,939

 £9,118

4.    Section 31(1) of the 1996 Act

Limit on amount of guarantee payment payable to an employee in respect of any day.

 £26.00

 £27.00

5.    Section 120(1) of the 1996 Act(3)

Minimum amount of basic award of compensation where dismissal is unfair by virtue of sections 100(1)(a) and (b), 101A(d), 102(1) or 103 of the 1996 Act.

 £5,853

 £5,970

6.    Section 124(1ZA)(a) of the 1996 Act(4)

Limit on amount of compensatory award for unfair dismissal.

 £78,962

 £80,541

7.    Paragraphs (a) and (b) of section 186(1) of the 1996 Act

Limit on amount in respect of any one week payable to an employee in respect of a debt to which Part 12 of the 1996 Act applies and which is referable to a period of time.

 £479

 £489

8.    Section 227(1) of the 1996 Act(5)

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.

 £479

 £489

 

Geographical extent – This order applies to England Scotland and Wales.

The Employment Rights (Increase of Limits) Order (Northern Ireland) usually comes into effect in February but has not yet been published.