The cost of getting it wrong increases in April 2018!

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The annual update to employment tribunal limits has been released, and the increases are higher than we have seen in previous years.

The Employment Rights (Increase of Limits) Order 2018 has increased compensation limits and minimum awards payable under employment legislation.

These increases will come into force from 6 April 2018 and if the action or appropriate date for action falls before this date, the old limits will apply.

The increases are:

Maximum limit on compensatory award for unfair dismissal will increase to £83,682

Maximum limit on a week’s pay for calculating basic award and statutory redundancy payments increase to £508

Guarantee pay will increase from £27 to £28 per day;

The minimum basic award in cases where a dismissal is unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase to £6,203.

Award for unlawful inducement relating to trade union membership or activities, or for unlawful inducement relating to collective bargaining increased to £4,059.

Minimum amount of compensation where individual excluded or expelled from union in contravention and not admitted or re-admitted by date of tribunal application to £9,474

The increases made by this Order reflect the increase in the retail prices index of 3.9% from September 2016 to September 2017 and are in accordance with the formula set out in the Employment Relations Act 1999.

We ask our clients to consider the cost and time of employment tribunal versus the value of great HR support – as they say, never look at the price of the shovel when you are digging for gold!