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Compensation limits for redundancy and unfair dismissal claims in the Employment Tribunal are usually reviewed annually and increased in line with inflation.

The next increase will take place on 6th April 2021. This will mean that redundancies become more expensive for employers and unfair dismissal claims could cost more to defend.

New Compensation Limits

The new limits for 2021/2022 are as follows:

the maximum limit for one week’s pay when calculating unfair dismissal basic awards and statutory redundancy payments increases to £544 (from £538)
the maximum compensation limit for unfair dismissal increases to £89,493 (from £88,519)
the maximum basic award for trade union, health and safety, working time representative, pension scheme trustee and employee representative dismissals increases to £6,634 (from £6,562)

For help and advice

There is no fee to issue a claim in the Employment Tribunal. It is therefore vital to ensure that all managers and HR staff are trained properly to ensure they handle internal processes fairly. Failure to follow proper procedure could have a significant financial risk to your business.

Contact us today for more information regarding unfair dismissal claims or to find out what you need to do if you are facing issues in your business. We offer a free initial consultation with one of our friendly, expert employment solicitors for all new clients.