Increase in tribunal awards (April 2015)/how much can I claim in unfair dismissal?
From 6th April 2015 the following increases occur:
| Type of compensation | Current figure
|
From 6 April 2015
|
| The maximum compensation which a tribunal can award as compensatory award in ordinary unfair dismissal claims. | £76,574 | £78,335 |
| Maximum limit on a week’s pay (used for the purpose of calculating statutory redundancy pay and basic awards in unfair dismissal claims) | £464 | £475 |
Please click here for the full Order.
What is the maximum I can claim in an unfair dismissal claim?
The new rates are relevant to both unfair dismissal claims and redundancy payments.
The new rates only apply to dismissals on or after 6th April 2015.
In an unfair dismissal claim the only compensation you can claim is:
Basic award
This is calculated in the same way as a statutory redundancy payment (click here for a useful redundancy calculator) which is based on your age, length of service and gross weekly pay (capped at the government rate).
The maximum amount for a week’s gross pay is capped and this cap rises from £464 to £475 on 6th April 2015. So if you earn £500 gross per week then this will be capped at £475. If you earn less than £475 then your actual earnings are used in the calculation.
Statutory redundancy payments are also capped at 20 years so the maximum payment available would be £14,250.
Compensatory award
This includes an amount for loss of earnings.
The maximum compensatory award for ordinary unfair dismissal claims will increase to £78,335 (from £76,574) or 52 weeks’ gross pay – whichever is less. So if you earn £45,000 per year then the compensatory award is limited to £45,000.
If you have been unfairly dismissed or have any questions about redundancy payments please contact me at kate.brooks@ellisjones.co.uk.
How can we help?
When you submit this form an email will be sent to the relevant department who will contact you within 48 hours. If you require urgent advice please call 01202 525333.
