2022 Employment Rights – Annual Increase to Limits

6th April 2022 6th of April 2022 - annual increase to limits and tribunals
LLM, LPC & LLB (Hons) Shereen Murphy
Written by: Jessica Lee Legally reviewed by: LLM, LPC & LLB (Hons) Shereen Murphy Updated: In: Employment

From the 6th of April 2022, an annual increase to limits and tribunals is to come into action. The new rates apply to employees whose termination date is either on or after the 6th of April 2022.

Annual Increase to Limits

From the 6th of April 2022, the new compensation limits are to take action when the ‘appropriate act’, takes place either on or after the 6th of April.

The New Annual Increases to Limits Are:

  • The usage of a ‘week’s pay’ for the purpose of calculating both the basic award in unfair dismissal cases and statutory redundancy payments will be capped at £571 instead of £544.
  • Statutory redundancy pay will increase, with the maximum payment changing to £17,130.

Increases to the Maximum Award for Unfair Dismissal

There are two types of compensation awarded for unfair dismissal claims:

  • “Basic award” compensation is calculated in the same way as statutory redundancy pay. This means that it will also increase as described above in the compensation limits.
  • “Compensation award” where the maximum compensation award for unfair dismissal has increased from £89,493 to £93, 878.
  • For an “ordinary” unfair dismissal claim a separate cap applies. If your annual gross income comes to less than £93,873, the sum of your unfair dismissal compensation will be less than both the maximum compensation award and one year’s pay.

Guidance and Support from our Employment Law Solicitors

As this article shows, employment law is constantly being updated to keep up with the ever-changing economy and advancements in the law.

It can feel difficult knowing where to start when claiming compensation regarding your employment. Our employment law solicitors are here to walk you through the process and discuss the facts of your case to establish your chances of success. We can help estimate any compensation you could be entitled to, starting the process as soon as you are ready.

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