New unfair dismissal compensation rates

From 6 April 2020, tribunal awards and redundancy rates are to increase.

As expected, the government have finally announced new rates that will come into effect next month. They show that the maximum amount of unfair dismissal compensation claimants will be able to get is £104,659, something that could prove to be highly challenging for an organisation. Rates are outlined in full below:

  • basic award for unfair dismissal increases from a maximum of £15,750 to £16,140
  • compensatory award for unfair dismissal increases from a maximum of £86,444 to £88,519, which claimants can receive as a maximum if their annual earnings exceed this figure
  • additional award for unfair dismissal increases from a maximum of £27,300 to £27,976
  • week’s pay for redundancy purposes increases from a maximum of £525 to £538, with the maximum for overall statutory redundancy pay increasing from £15,750 to £16,140
  • statutory guarantee pay is also to increase from £29 to £30.

It should also be noted that an increase to the lower earnings limit has been announced, from £118 to £120

« Back to News