Employment Tribunal Award Limits

Legislation setting the annual increase in Employment Tribunal Award Limits has been laid before Parliament.

The new rates will apply where the effective date of termination of an employee’s employment (or other calculation date) is on or after 6 April 2024.

A Week’s Pay

The maximum rate of a week’s pay, used for calculating statutory redundancy payments, the basic award for unfair dismissal and certain other tribunal awards, will increase to £700 (up from £643).

The Basic Award

The Basic Award is normally calculated according to the following formula:

  • 0.5 week’s pay per complete year of continuous service under the age of 22;
  • 1 week’s pay per complete year of continuous service between ages 22 and 40;
  • 1.5 weeks’ pay per complete year of continuous service over the age of 41
  • A “week’s pay” is calculated gross and is capped at the statutory maximum – £700 (from 6 April 2024)
  • The maximum period of continuous service taken into account is 20 years
  • The minimum period of continuous service required to qualify for a Basic Award is 2 years
  • Continuous service is counted backwards from the date on which the employment terminated

The minimum basic award will increase from £7,836 to £8,533 and the maximum cap will now be £21,000 (increased from £19,290).

Compensatory Award

The maximum compensatory award for unfair dismissal is set to increase to £105,707 (up from £93,878).

The cap on the compensatory award is the lower of £115,115 or 52 weeks’ pay (based on the claimant’s gross salary prior to the dismissal including employer pension contributions but excluding benefits-in-kind and discretionary bonuses).

Note that there is no statutory cap on compensation if an employee is dismissed for whistleblowing or for carrying out health and safety activities.

Vento Bands for Awards for Injury to Feelings

An award for injury to feelings is made to compensate for injury to feelings caused by discrimination. The award is separate from an award to compensate for financial loss and can be made even where no financial loss has been suffered. Awards for injury to feelings are assessed in bands, known as the Vento bands.

For claims presented on or after 6 April 2024 the bands are as follows:

  • Lower band of £1,200 to £11,700 (less serious cases);
  • Middle band of £11,700 to £35,200 (cases that do not merit an award in the upper band); and
  • Upper band of £35,200 to £58,700 (the most serious cases), with the most exceptional cases capable of exceeding £56,200.

Awards of more than £58,700 will only be made in the most exceptional of cases.

Employee Handbook Compliance Package

Green Arrow (150 x 120)

Is Your Employee Handbook Compliant?

An hour of my time can save MANY hours of your time!

My HR Compliance Package ensures your essential employment documents accurately remain up-to-date with new employment legislation and changes to existing legislation so you avoid complicated situations developing.

Get the Latest Legislation News and My Top Tips delivered straight to your inbox

Let Me Buy You A Coffee!

If you found this helpful and you would like to learn more about how I work with owners of small business who want to improve their HR management, please go here.

Tap into and share the Kea world!

Don't forget to add Kea to your social networks and when you read an article that you like share it with your network!
Employment Tribunal Award Limits


Kathryn is a highly experienced HR Manager with a wealth of skills and knowledge acquired across a variety of industries including manufacturing, health and social care and financial services. She has worked in small localised business and larger multi sited organisations and is comfortable liaising with senior managers and union officials as well as answering queries from team members. Connect with Kathryn on:

Call Us