March.07.2022
The annual updates to the limits applying to certain awards made by the employment tribunals have been announced. The Employment Rights (Increase of Limits) Order 2022 (SI 2022/182) was laid before Parliament on 25 February 2022 and the relevant increases in the limits will come into force from 6 April 2022. The increased limits will therefore apply to compensation or other payment which arises as the result of an event occurring on or after 6 April 2022.
The increases are based on the retail prices index (RPI) and reflect an increase of 4.9% in the index from September 2020 to September 2021. Employers should be aware that the increases are somewhat higher than in previous years. Key to note is the increase in the amount of the compensatory award for unfair dismissal, rising from £89,493 to £93,878.
The full list of increases due to come into force from 6 April 2022 are set out below.
|
Provision / Award |
Old limit to 6 April 2022 |
New limit from 6 April 2022 |
|
Limit on amount of compensatory award for unfair dismissal. |
£89,493 |
£93,878 |
|
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. |
£544 |
£571 |
|
Minimum amount of basic award of compensation where dismissal is unfair by virtue of section 100(1)(a) or (b), 101A(d), 102(1) or 103 of the Employment Rights Act 1996. |
£6,634 |
£6,959 |
|
Limit on weekly amount payable to an employee, pro-rated where referable to a shorter period, in respect of a debt to which Part 12 of the Employment Rights Act 1996 applies and which is referable to a period of time. |
£544 |
£571 |
|
Amount of award for unlawful inducement relating to trade union membership or activities or for unlawful inducement relating to collective bargaining. |
£4,341 |
£4,554 |
|
Minimum amount of basic award of compensation where dismissal is unfair by virtue of section 152(1) or 153 of the Trade Union and Labour Relations (Consolidation) Act 1992. |
£6,634 |
£6,959 |
|
Minimum amount of compensation where individual excluded or expelled from union in contravention of section 174 of the Trade Union and Labour Relations (Consolidation) Act 1992 and not admitted or re-admitted by date of tribunal application. |
£10,132 |
£10,628 |
|
Limit on amount of guarantee payment payable to an employee in respect of any day. |
£30 |
£31 |
A number of other rates and thresholds for employers will also increase from April 2022. The key rates for employers to note are listed below.
|
Type |
Old rate to April 2022 |
New Rate from April 2022 |
|
National Minimum Wage (national living wage rate – for those aged 23 and above) |
£8.91 |
£9.50 |
|
Statutory Maternity & Adoption Pay (after the first 6 weeks), Statutory Paternity Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay (weekly rate) |
£151.97 or 90% of the employee's average earnings, whichever is lower |
£155.66 or 90% of the employee's average earnings, whichever is lower |
|
Statutory Sick Pay (weekly rate) |
£96.35 |
£99.35 |
|
Statutory Redundancy Payment (maximum) |
£16,320 |
£17,130 |