The value of statutory redundancy pay and employment tribunal remedy awards are limited to set maximum amounts, these limits are reviewed on an annual basis and the general rule of thumb is that they increase in line with the retail prices index (RPI). 

The new values which will be effective from 6 April 2002 have recently been published in The Employment Rights (Increase of Limits) Order 2022 and the sharp increase in the RPI over the last 12 months has been reflected in the new values. 

  •  the limit on a week’s pay for calculating redundancy and the unfair dismissal basic award has gone up from £544 to £571 (an increase of 4.96%) 
  • the above increase means the maximum basic award for statutory redundancy payment and unfair dismissal has gone up from £16,320 and is now £17,130  
  • the maximum compensatory award for unfair dismissal has increased to £93,878 or a year’s pay, whichever is lower 
  • the minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons has increased from £6,634 to £6,959 

Given these changes the most an employment tribunal could award for an unfair dismissal, when putting together the maximum basic plus the compensatory awards, is now £111,008. 

These new limits relating to dismissal compensation, including statutory redundancy pay will apply for any dismissals where the effective date of termination is on or after 6 April 2022. If you have already started a redundancy process or given notice but the effective date of termination is on or after 6 April 2022 then you’ll need to revisit your calculations and adjust them in line with this change. 

Do you have questions about statutory pay and tribunal awards?

Give us a call at CUBE HR on 01282 678321, we’ll be happy to advise you and we have policies and templates available to meet every HR need.

Why not check out our blog on a similar topic Minimum Wage & Statutory Rate Changes

We also have a YouTube channel with loads of handy videos.