Maximum redundancy rates for 2022-23 brought into legislation

02 March 2022

The tax year is drawing to a close, but we are still receiving important updates for 2022/23. Legislation has been laid before parliament and will come into force 6 April 2022 for England, Scotland and Wales.

The Employment Rights (Increase of Limits) Order 2022 sets the new limit at £571 per week. This is an increase of £27 from the 2021/22 rate.

The below table shows the other rates set in the statutory instrument:

Relevant statutory provision

Subject of provision

Old limit

New limit


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.




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.




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.




Section 31(1) of the 1996 Act

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




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.




Section 124(1ZA)(a) of the 1996 Act(25)

Limit on amount of compensatory award for unfair dismissal.




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.




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.



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