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Employment Tribunal Compensation Limits

 

Compensation Limits

Employment Tribunal compensation limits are increased every year from 6th April. Remember to amend your schedule of loss.

2020 Compensation Rates

A weeks pay

  • Maximum limit on a week’s pay when calculating redundancy pay and the basic award in unfair dismissal – £538.00 (2019 – £525.00)
  • Maximum statutory redundancy payment =  £16,140.00 (2019 -£15,750. 00)

Unfair Dismissal

  • Maximum basic award – £16,140.00 (2019 -£15,750. 00)
  • Maximum compensatory award – £88,519.00 (2019 – £ 86,444.00) or your annual pay, whichever is lower
  • Maximum total compensation [basic award + compensatory award] – £104,659.00 (2019 – £102,194.00)
  • Additional award for failure to comply with reinstatement or re-engagement order =£13,988.00 – £27,976.00 (2019 – £13,650 – £27,300)  (26-52 weeks’ pay maximum)

Minimum basic award – automatically unfair dismissal

Under section 120(1) Employment Rights Act 1996 (ERA 1996) and section 156 Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992), the following automatically unfair dismissals have a minimum award of £6,562.00 (2019 – £6,408.00);

Dismissal for…

  • Trade union membership or activities – sections 152(1) & 3 TULR(C)A 1992
  • Carrying out activities as a health and safety representative – section 100(1)(a) & (b) ERA 1996
  • Carrying out functions as a workforce representative – section 101A(1)(d) ERA 1996
  • Carrying out duties as an occupational pension scheme trustee – section 102(1) ERA 1996
  • Carrying out functions or activities as an employee representative – section 103 ERA 1996

The maximum basic award is the same as the standard unfair dismissal – £16,140.00 (2019 -£15,750. 00)


Failure to provide a written statement of employment particulars (Section 1 statement)

Where your employer fails to provide a written statement of employment particulars, the Employment Tribunal has the discretion to award 2 weeks pay. The limit on two weeks pay is £1076.00 (2019 – £1050.00)

If it considers it just and equitable to do so, the tribunal can award up to 4 weeks pay. The limit on 4 weeks pay is £2152.00 (2019 – £2100.00)


Breach of the right to be accompanied

If your employer does not allow you to be accompanied in discipline and grievance proceedings, the Employment Tribunal can award a maximum of 2 weeks pay. The limit on 2 weeks pay is £1076.00 (2019 – £1050.00)


Breach of flexible working regulations

After at least 26 weeks of continuous employment, you can apply to your employer for flexible working arrangements. Under Regulation 6 of the Flexible Working Regulations, the Employment Tribunal can order your employer to pay you a compensatory award of up to eight weeks pay (maximum £4,304.00. 2019 -£4200.00) if your employer;

  • Fails to deal with your application in a reasonable manner.
  • Fails to notify you of the decision on your application within the decision period.
  • Fails to rely on one of the statutory grounds when refusing your application.
  • Bases the decision on incorrect facts.
  • Treats your application as withdrawn when the grounds entitling your employer to do so do not apply.

In addition, the Employment Tribunal must make a declaration, and can also order your employer to reconsider your request.


Redundancy

If you are made redundant after two years continuous employment, you are entitled to a statutory redundancy payment which is calculated in the same way as the basic award for unfair dismissal. The formula is in section 162 ERA 1996.


Failure to inform or consult over collective redundancy

The maximum protective award for failure to inform or consult over a collective redundancy is 90 days gross pay per dismissed employee – section 189 TULR(C)A 1992. There is no statutory limit or minimum award.


Maximum guarantee payments

Under section 31(1) ERA 1996, you may be entitled to a statutory guarantee payment if you are laid-off or on short-time working. The formula for calculation is in section 34 of the Employment Relations Act 1999, and the yearly rate is given by the Social Security Benefits Uprating Order. It is calculated by multiplying the number of normal working hours on the workless day by the guaranteed hourly rate. Statutory guarantee payments are subject to a maximum daily limit of £30.00 (2019- £29.00) a day, subject to a maximum of five days or £150.00 (2019 – £145.00) in any three months.


Updated: 16/03/2020

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