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 |
|
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. |
£4,341 |
£4,554 |
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. |
£6,634 |
£6,959 |
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. |
£10,132 |
£10,628 |
4 |
Section 31(1) of the 1996 Act |
Limit on amount of guarantee payment payable to an employee in respect of any day. |
£30 |
£31 |
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. |
£6,634 |
£6,959 |
6 |
Section 124(1ZA)(a) of the 1996 Act(25) |
Limit on amount of compensatory award for unfair dismissal. |
£89,493 |
£93,878 |
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. |
£544 |
£571 |
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. |
£544 |
£571 |
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