The annual updates to the limits applying to certain awards made by the employment tribunals have been announced. The Employment Rights (Increase of Limits) Order 2022 (SI 2022/182) was laid before Parliament on 25 February 2022 and the relevant increases in the limits will come into force from 6 April 2022. The increased limits will therefore apply to compensation or other payment which arises as the result of an event occurring on or after 6 April 2022.
The increases are based on the retail prices index (RPI) and reflect an increase of 4.9% in the index from September 2020 to September 2021. Employers should be aware that the increases are somewhat higher than in previous years. Key to note is the increase in the amount of the compensatory award for unfair dismissal, rising from £89,493 to £93,878.
The full list of increases due to come into force from 6 April 2022 are set out below.
A number of other rates and thresholds for employers will also increase from April 2022. The key rates for employers to note are listed below.