Employees may be entitled to more compensation at employment tribunals from April as the government has announced an increase in limits.
Employment tribunals take place when a dispute has taken place between an employee and an employer, usually regarding redundancies, unfair dismissals and equal pay.
Employment Tribunals are the judicial body with responsibility for workplace justice. They are part of the wider judicial system and one of the three largest tribunals in the greater tribunals system.
However, there are limits and guidelines to how much compensation can be awarded to employees.
From April, compensation limits could increase to the following:
- Maximum compensatory award for unfair dismissal: £105,707 to £115,115.
- Limit on a week’s pay: £643 to £700.
- Minimum basic award for some forms of unfair dismissal rises from £7,836 to £8,533.
- Statutory guarantee pay increases from £35 to £38 per day.
The changes are subject to parliamentary approval. They are due to take effect from 6th April 2024 – (If this is is forthcoming) they will take effect from 6th April 2024.
The government website explains that the increases have been made Under section 34(2) of the Employment Relations Act 1999 (“the 1999 Act”) which states that if the retail prices index for September of a year is higher or lower than the index for the previous September, the Secretary of State is required to change the specified sums by the percentage of the increase or decrease.
The increases made by this Order reflect the increases in the retail prices index of 8.9% from September 2022 to September 2023.
What is unfair dismissal?
Unfair dismissal is when your employer has dismissed you from your job role without good reason or by failing to follow the companies disciplinary policy.
An example of this could be that you have been dismissed after your employer found out you joined a trade union, or you requested time off work for maternity leave.
As an employee, laws are in place to protect you from being dismissed unfairly at work, especially if you have been employed with the company for more than two years.
Your dismissal may be unfair if you have been dismissed due to one of the following:
- Asked for flexible working
- Refused to give up your working time rights – for example, to take rest breaks
- Resigned and gave the correct notice period
- Joined a trade union
- Took part in legal industrial action that lasted 12 weeks or less
- Needed time off for jury service
- Applied for maternity, paternity and adoption leave
- Were on any maternity, paternity and adoption leave you’re entitled to
- Tried to enforce your right to receive Working Tax Credits
- Exposed wrongdoing in the workplace (whistleblowing)
- Were forced to retire (known as ‘compulsory retirement’)
- Took emergency time off for dependants under s57A of the Employment Rights Act 1996
Further reading
Unfair dismissal – Oakwood Solicitors
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Fiona Almazedi has been with Oakwood Solicitors for the last 10 years working as a consultant and taking up the position of Head of Employment on the 3rd January 2024.
Fiona has over 20 years of ex…
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