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.