The Parliament is currently examining new rates for awards made by employment tribunals, and other payments in employment law.
Parliament is currently considering the draft Employment Rights (Increase of Limits) Order, 2025. This order applies to England and Wales, as well as Scotland. It sets out new statutory rates for certain awards of employment courts and other amounts payable pursuant to employment legislation.
The key changes include: an increase in the maximum compensation award for unfair dismissal from PS115.115 to PS118.223, and an increase in the statutory guarantee payment from PS38.39 to PS39.39 per day.
The PS19 increase in the statutory limit on a weekly pay for purposes of calculating basic awards and statutory redundancy payments means that the unfair dismissal award will be increased, the maximum amount now being PS21.570 (20 x PS719 multiplied by 1.5).
The minimum compensation amount for individuals who are excluded or expelled by a union, in violation of section 174, of the Trade Union and Labour Relations (Consolidation) Act, 1992, and have not been admitted or readmitted before the date of their application, will increase from PS13.032 to PS13.384.
The maximum amount of compensation for failing to have a policy in writing on how to deal with tips, service charges and gratuities, or failing to keep a record on the way they were dealt with, (under Employment Rights Act 1996) has increased from PS5,000 up to PS5,135.
The maximum award in cases of unlawful inducement related to union membership, activities or collective bargaining has increased from PS5,584 up to PS5,733.
The amount of the basic award for compensation in cases of unfair dismissal has been raised from PS 8,533 to a minimum of PS 8,763.
The new rates are applicable to all compensation and payments arising after the 6th April 2025. In the case of unfair dismissal, the rates are applicable to all dismissals whose effective termination date falls on or after 6 April 2025. If the dismissal date or the relevant event is before 6 April, then the old rates will apply regardless of when compensation is paid.
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