New compensation limits and statutory payments for employment matters – April 2022
Employment Tribunal compensation limits are a useful tool for both employers and employees in valuing potential claims for redundancy and unfair dismissal and weighing up the risks involved.
The limits increase each tax year in line with inflation and, for example, redundancies after 6 April 2022 will cost employers more.
National Minimum Wage rates and statutory payments for statutory sick leave and statutory family related leave also increase each tax year.
Here are the key changes from April 2022 onwards for employers and employees to note –
Tribunal awards – compensation limits
|Employment Rights||Maximum award 6 April 2021 to 5 April 2022||Maximum award 6 April 2022 to 5 April 2023|
|Basic Award week’s pay||£544||£571|
|Compensatory award||£89,493 (or 52 weeks’ actual gross pay at time of dismissal, whichever is lower)*||£93,878 (or 52 weeks’ actual gross pay at time of dismissal, whichever is lower)*|
|Maximum combined award||£105,813*||£111,008*|
|* The limit does not apply, for example, where the reason for dismissal or redundancy selection is carrying out health and safety activities or making a protected disclosure. There is also no limit to compensation for injury to feelings in discrimination claims|
|Statutory redundancy pay: up to 30 weeks’ pay||£16,320||£17,130|
|Breach of contract||£25,000||£25,000|
|Failure to reinstate or re-engage: 26 to 52 weeks’ pay||£14,144 to £28,288||£14,846 to £29,692|
|Breach of right to be accompanied: up to 2 weeks’ pay||£1,088||£1,142|
|Breach of flexible working regulations: up to 8 weeks’ pay||£4,352||£4,568|
|Failure to give written particulars of employment 2 or 4 weeks’ pay||£1,088 to £2,176||£1,142 to £2,284|
|Guarantee payment (each day)||£30 (subject to a maximum of £150 in any three months)||£31 (subject to a maximum of five days or £155 in any three months)|
National minimum wage and National Living Wage rates
|Minimum wage rate||1 April 2021 to 31 March 2022||1 April 2022 to 31 March 2023|
|National Living Wage (Age 25+)||£8.91||£9.50|
Statutory leave and payments for time off work
|Type of leave / pay||Maximum 3 April 2021 to 2 April 2022||Maximum 3 April 2022 to 2 April 2023|
|Maternity/adoption/paternity/shared parental leave pay per week (prescribed rate)||£151.97||£156.66|
|Statutory sick pay per week||£96.35||£99.35|
Please get in touch with our Specialist Employment Team if you would like to discuss any of the above.
Katie Hendry, Solicitor: email@example.com / 0141 221 8012
Dawn Robertson, Partner firstname.lastname@example.org / 0131 222 2939