Increase in Statutory Limits and the introduction of tribunal fees

by | Mar 7, 2024 | News

The government has announced the annual increase in compensation limits for employment tribunal
awards and other statutory payments. They are contained in The Employment Rights (Increase of Limits) Order 2024

The two key increases are:
• maximum compensatory award for unfair dismissal: £105,707 to £115,115.
• limit on a week’s pay: £643 to £700.
Other figures include:
• minimum basic award for some forms of unfair dismissal rises from £7,836 to £8,533.
• statutory guarantee pay increases from £35 to £38 per day.
The changes are subject to parliamentary approval. They are due to take effect from 6th April 2024.

Introduction of Tribunal Fees
The Government has started consultation regarding the re-introduction of tribunal fees:
Introducing fees in the Employment Tribunals and the Employment Appeal Tribunal – GOV.UK

It has proposed a £55 fee to issue any claim at an employment tribunal, with no additional hearing fee.
Tribunal fees were originally introduced in July 2013 and were significantly higher than those now being
proposed by the government (starting at £390 depending on the type of claim).
In 2017, the Supreme Court ruled them unlawful, and they were subsequently abolished – resulting in
a huge increase in tribunal claims shortly after. Some cases are currently taking 12-18 months from the
date of submission to a hearing.
It is thought the introduction of the fees will reduce the backlog of claims.
We will of course keep you updated on the progress of the consultation.

For more information on any of the above please contact the Spire HR Team on 01925 626253 or
info@spirehr.co.uk

 

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