Tribunal Award increases

April 2023 has seen changes to employment rates and limits that are adjusted annually in line with the retail prices index. Among these are the limits on employment tribunal awards.

The statutory limit on certain employment tribunal awards have increased, where the event giving rise to compensation occurred on or after 6 April 2023.

The maximum amount of a week’s pay (for the purposes of the unfair dismissal basic award) will increase from £571 to £643; and the maximum compensatory award for an unfair dismissal claim (provided this is lower than the additional cap on the compensatory award of 52 weeks’ pay) will increase from £93,878 to £105,707.

The so-called “Vento bands” that provide guidance for employment tribunals when deciding awards for injury to feelings in discrimination claims, will also increase in respect of claims presented on or after 6 April 2023 as follows.

• Lower band (less serious cases) – £1,100 to £11,200 (from £990 to £9,900).
• Middle band (cases that do not merit an award in the upper band) – £11,200 to £33,700 (from £9,900 to £29,600).
• Upper band (the most serious cases) – £33,700 to £56,200 (from £29,600 to £49,300).
• The most exceptional cases are capable of exceeding an award of £56,200.