Annual Inflation-Linked Changes in Tribunal Awards

The Employment Rights (Increase of Limits) Order 2015, which details the annual inflation-linked changes in limits on the compensation amounts which can be awarded by employment tribunals, was laid before Parliament on 13 February 2015 and applies where the appropriate date falls on or after 6 April 2015.

The main changes are:

  • The maximum amount of a week’s pay for the purpose of calculating a redundancy payment, or for various awards including the basic or additional award of compensation for unfair dismissal, increases from £464 to £475; and
  • The statutory maximum compensatory award for unfair dismissal increases from £76,574 to £78,335.

In July 2013, a 12 months’ pay cap was introduced on the unfair dismissal compensatory award if this amount is less than the statutory maximum or overall cap. Where the employee’s annual salary exceeds the limit, the statutory maximum applies.

There is no statutory cap on the amount a tribunal can award in discrimination cases.