From 6 April 2022, The Employment Rights (Increase of Limits) Order 2022 increases the limits applied to certain awards of the Employment Tribunals, and other sums payable under employment legislation (such as statutory redundancy payment rates). Read on to see details of the increases to ensure you receive your correct entitlements and are not caught out by employers using the old rates when calculating exit payments.
What Payments Will Increase?
Schedule 1 to the above Order sets out the payments that will increase from 6 April 2022 and there are some substantial increases this year. Some of the key increases are as follows:
- The limit on the compensatory award in relation to an unfair dismissal claim will increase from £89,493 up to £93,878. This is a significantly higher increase than we have seen in previous years.
- The limit on a week’s pay for the purposes of calculating the basic award will increase from £544 up to £571. Again, this is a far higher increase than we have seen in previous years.
- The maximum basic award in the event of an automatically unfair dismissal for a health and safety claim under section 100 (1) (a) or (b) of the Employment Rights Act 1996 will increase from £6,634 up to £6,959.
- The limit on a week’s pay for the purposes of calculating a statutory redundancy payment will also increase from £544 to £571. To illustrate the increase with an example, the impact to the statutory redundancy payment of a 60 year old employee with 15 years of service earning at the maximum level, would be an additional payment of £607.50.
What Does This Mean?
The above increases will take effect from 6 April 2022. This means that if your employment terminates on or after 6 April 2022 and you either pursue a claim of unfair dismissal or are entitled to a statutory redundancy payment, your entitlements will increase.
Please Ensure You Receive Your Correct Entitlements
Over the last few weeks, I have already started to advise employees who have been notified that their employment will end in the coming months (i.e. after 6 April 2022). In some cases, employers are proposing to pay redundancy entitlements based on the old rates or, alternatively, redundancy processes are being rushed to avoid extra payments being due.
In all cases it is extremely important to consider your position and ensure you receive your correct entitlements.
Lincs Law Employment Solicitors Can Help You
If you are worried about your entitlement to compensation or a statutory payment and would like some advice about your situation, please contact us for a free no obligation consultation with a fully qualified employment solicitor. Simply use the contact form, engage in a web chat, email email@example.com or call us on 01522 440512 and we’ll be happy to help. Alternatively, for more information about redundancy and employment tribunal claims please visit https://lincslaw.co.uk/services/employees/resignation-dismissal-and-redundancy/
Director, Specialist Employment Solicitor
Lincs Law Employment Solicitors
Tags: Compensatory Award employment solicitor Employment Tribunal proceedings Increase to compensation Increase to Redundancy Payment lincs law employment solicitors sophie goodwill Statutory Redundancy Payments