Increase in tribunal compensation limits

Increases have been made to the compensation limits for certain employment rights, as the Employment Rights (Increase of Limits) Order 2025 came into force from 6 April 2025.

The maximum amount for a week’s pay (for an unfair dismissal basic award and a statutory redundancy payment) increased to £719 (from £700). The maximum compensatory award for unfair dismissal increased to £118,223, or a year’s salary where this is lower (from £115,115).

The minimum amount of unfair dismissal award for trade union, health and safety, working time representative, pension scheme trustee and employee representative dismissals increased to £8,763 (from £8,533).

Statutory guarantee pay increased to £39 per day (from £38).

The amount for unlawful inducement relating to trade union membership/activities or collective bargaining increased to £5,735 (from £5,584).