Increase in UK unfair dismissal claims


26 February 2018

By Alexandra Dean

The Government has announced new limits on the maximum compensation that the Employment Tribunal can award for unfair dismissal claims. The Employment Rights (Increase of Limits) Order 2018 will change the calculation of statutory redundancy payments and the maximum award available for unfair dismissal compensation in relation dismissals where the individual's termination of employment falls on or after 6 April 2018.  

The three key changes to be aware of are:

1. The limit on the compensatory award for unfair dismissal will increase from £80,541 to £83,682;

2. The maximum amount of a week's pay for calculating statutory redundancy payments and the basic award in unfair dismissal claims will increase from £489 to £508;

3. The minimum basic award for unfair dismissal in health and safety, employee representative, trade union and occupational pension trustee cases will increase from £5,970 to £6,203.

Further compensation can also be recovered where an additional award is made because the employer has failed to comply with a reinstatement or re-engagement order.

At Gepp & Sons, our Employment Law Team will be happy to assist you with any aspect of employment law. If you seek advice, please contact our Head of Department, Alexandra Dean, on 01245 228141 or via

This is not legal advice; it is intended to provide information of general interest about current legal issues.