Employment Tribunal Compensation Limits and Statutory Benefits Update for 2024
Employment Tribunal compensation limits and other statutory benefits, such as statutory redundancy pay, increase annually as declared by the government. The new rates will take effect on April 6, 2024, and will apply to any related incidents occurring on or after that day. The Employment Rights (Increase of Limits) Order 2024 will implement these changes. Here are the key updates:
Cap on a Statutory Week’s Pay: Increasing from £643 to £700.
Cap on Statutory Redundancy Pay: Increasing from £19,290 to £21,000.
Maximum Basic Award for Unfair Dismissal: Increasing from £19,290 to £21,000.
Additional Award for Unfair Dismissal: Increasing from £16,718 to £33,436 to £18,200 to £36,400.
Statutory Guarantee Pay: Increasing from £35 per day (subject to a maximum of five days or £175 in any three months) to £38 per day (subject to a maximum of five days or £190 in any three months).
Compensation for Unfair Dismissal: Increasing from £105,707 to £115,115.
These higher rates reflect the 8.9% increase in the retail prices index between September 2022 and September 2023.
What Do These Increases Mean for Employers?
Employers need to be aware of the higher rates starting in April 2024, especially if there are any impending layoffs or redundancies. Additionally, employers should note that from April 2024, there will be increases to the National Minimum Wage rates. Statutory benefits, including shared parental leave, maternity, paternity, and sick pay, will also see increases.
Employers should prepare for these changes and update their policies and payroll systems accordingly. Staying informed and proactive will help manage the financial implications of these increases effectively.
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