From 6 April 2023, annual increases to employment tribunal compensation awards and statutory redundancy payments will come into effect. Read on for more information about the new rates to ensure you are aware of your entitlement in the event of an employment claim or you are being made redundant.
What Payments Will Increase?
The Employment Rights (Increase of Limits) Order 2023 makes the following changes:
- The limit on a week’s pay, used to calculate statutory redundancy pay or basic awards for unfair dismissal will increase from £571 to £643.
- The maximum compensatory award for unfair dismissal will increase from £93,878 to £105,707 (although note the upper limit remains the lower of a year’s salary or the maximum statutory limit).
- The minimum basic award where a dismissal is unfair because of health and safety, employee representative, trade union, or occupational pension trustee reasons increases from £6,959 to £7,836.
In successful claims for discrimination under the Equality Act 2010, an Employment Tribunal can award damages to employees for injury to feelings. The bands of award for injury to feelings are known as the Vento bands after the case in which the guidance was first set out – Vento v Chief Constable of West Yorkshire. The Vento bands are also being updated and in respect of claims presented on or after 6 April 2023 will be as follows:
- A lower band of £1,100 to £11,200 for less serious cases, typically a one off/isolated incidence of discrimination;
- A middle band of £11,200 to £33,700 for cases that do not merit an award in the upper band;
- An upper band of £33,700 to £56,200 for the most serious cases, with the most exceptional cases capable of exceeding £56,200.
Lincs Law Employment Solicitors Can Help You
If you would like advice about compensation and the value of your own claim please contact us for a free enquiry on 01522 440512 or via the web chat or contact form on our website at www.lincslaw.co.uk.
Kathryn Bolton
Associate
Specialist Employment Solicitor
Lincs Law Employment Solicitors
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