Employment Law

Client Update: Compensation Limits

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Compensation Limits

From 6 April 2022 the compensation limits for unfair dismissal claims will be increased.
The new figures will apply where the employment termination date falls on or after 6 April 2022. The increases are based on the September 2021 retail prices index (RPI) which increased by 4.9% since the previous year.
The following new figures will apply from 6 April 2022:

  • The limit on a week’s pay increases from £544 to £571.
  • The maximum compensatory award for unfair dismissal increases from £89,493 to £93,878.
  • The minimum basic award for certain unfair dismissals (including health and safety dismissals) increases from £6,634 to £6,959.
Author: Jonothan Scollen, Employment Law Solicitor at Howarths
Got a question? Contact a member of our Employment Law Team on 01274 864 999.


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