Increase to compensation awards at the Employment Tribunal

Caroline Cobain
Legal Director
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The scope of the compensatory awards which the Employment Tribunal has powers to order that employers make to successful claimants is typically increased on an annual basis. That being so, the increased figures for compensatory awards, which will take effect on 6 April 2021, have recently been released and are outlined below.

Successful claims in (most) unfair dismissal cases can be awarded compensation of the lower of 52 weeks’ actual gross pay or the recently increased statutory limit of £89,493.

Separately, awards for successful discrimination claims are uncapped, but compensation is generally awarded with reference to “bands” of awards, with new thresholds as follows:

• Lower band (less serious cases): £900 to £9,100.
• Middle band (for cases more serious than the lower band but does not justifying an upper band award): £9,100 to £27,400.
• Upper band (will be awarded in the most serious cases): £27,400 to £45,600.
• Exceptional cases: award may exceed £45,600.

We will publish updates on any further changes to these rates as they arise. However, if you would like to discuss the increased rates, or if we can provide any other support or assistance on any employment law matters, please do not hesitate to contact a member of the team on 0141 331 5150.

Topics: Employment Tribunal