Employment Tribunal Compensation Awards

Changes to Employment Tribunal Compensation Awards and Rates

Tribunal rates have now increased this year as of April and for Employers, it means that for Employees bringing a successful claim compensation awards will increase, we have looked at what the new rates are below:

 

Tribunal Awards and Limits

Statutory Right	Rates this Year (2021)	Rates (2020)
Failure to provide Statement of Terms and Conditions of Employment)	2-4 weeks pay (capped at a maximum of 1 weeks pay per week)	2-4 weeks’ pay (capped at a maximum of 1 weeks’ pay per week)
Breach of Employment Contract	An amount equal to loss but a maximum of £25k	An amount equal to loss but a maximum of £25k
Statutory Guarantee Pay (Daily Payment)	£30 per day – Payable in lay-off situations for a maximum of 1 working week in a 12-week period.	£30 per day – Payable in lay-off situations for a maximum of 1 working week in a 12-week period.
Statutory Redundancy Payment	£16,320 (capped)	£16,140 (capped)
Weekly Pay for Redundancy Purposes	£544 Maximum per week	£538 Maximum per week
Basic Award for Unfair Dismissal Claims	£16,320	£16,140
Compensatory Award for Unfair Dismissal Claims	£89,493 or 52 weeks’ pay Maximum (whichever is lower) **No maximum for whistleblowing or H&S	£88,519 or 52 weeks’ pay Maximum (whichever is lower) (No maximum re: whistleblowing or H&S successful claims
Discrimination for Unfair Dismissal Additional Awards	£14,144–£28,288 Maximum Unlimited	£13,988–£27,976 Maximum Unlimited

 

Why is this important?

We know that Employees bringing claims to tribunal can have a huge financial impact on your Business overall and you can see the implications of this above, these are the basic awards only with some limits being unlimited.

We also know that the stress, strain, and anxiety that a tribunal claim can cause you as a business owner is insurmountable

 

What are the other associated risks to Employers?

We also know that the damage to an Employers reputation can be seriously affected, this can be in many ways but as below there are ways in which Employers cannot control.

It is also worth noting that Employers are ‘named and shamed’, here you can see the list publicised by the Government in December showing 139 named companies that failed to pay £6.7 million to over £95k workers.

https://www.gov.uk/government/news/rogue-employers-named-and-shamed-for-failing-to-pay-minimum-wage

 

How can we support you?

We can provide you with up-to-date HR and or Employment Law advice and guidance, at a time that suits you, we can provide you with the necessary documentation to ensure you remain legally compliant.

 

Why not get in touch with a member of the HR and You Ltd team on 0333 006 9489 or you can now book straight into our calendars for a free consultation or just a free chat.

https://calendly.com/hr-andyou/teams-meeting

Author

Fran Crossland