The 28 February 2024 saw a new order laid before parliament, The Employment Rights (Increase of Limits) Order 2024 (SI 2024/213). This is set to revise the current employment tribunal awards and other statutory payments, with effect from 06 April 2024. Here, Daniel Allen of our dedicated Employment team, explains more about the implications for employers and employees.

The order confirms that the increases to such awards and payments will be increased in line with the retail prices index (RPI) between the period of September 2022 and September 2023, which increased by 8.9%.

The increases for both employers and employees need to be noted for any relevant payments due or any claims made on or after 06 April 2024 (and where the effective termination date in relation to a claim is on or after such date).

See below a short list of how the increases to awards and payments will be applied in line with the order:

•  A week’s pay (relevant for both redundancy pay and calculating the basic award for unfair dismissal claims) increase from £643 to £700 with the maximum award for both increasing from £19,290 to £21,000;
•  The maximum compensatory award for unfair dismissal claims increases from £105,707 to £115,115, this however remains subject to the overarching cap of a year’s pay;
•  Statutory Sick Pay increases from £109.40 to £116.75 with the lower earning limit per week remaining at £123.
• The statutory rates for family friendly payments (statutory maternity, paternity, adoption, parental bereavement and shared parental pay) increases from £172.48 to £184.03

In addition to this order, new Presidential Guidance from the Employment Tribunals issued on 25 March 2024 have updated the figures on injury to feeling awards, with effect from claims brought on or after 06 April 2024.

The awards are increased as follows: Lower band, currently at £990 – £9,900 increased to £1,200 – £11,700. Middle band, currently at £9,900 – £29,600 increases to £11,700 – £35,200. Upper band, currently at £29,600 – £49,300 is increased to £35,200 – £58,700. And exceptional cases will now be in excess of £58,700.

If you or your business would benefit from the advice and guidance of our Employment team, on any matter, please don’t hesitate to get in touch today by calling 01482 325242 or email enquiries@andrewjackson.co.uk.