Annual Increase in Compensation Limits and Statutory Payments in employment
With effect from April 2022, an increase to various employment related rates and limits will come into force, affecting both employment related payments, and compensation payments for tribunal awards.
With effect from April 2022, an increase to various employment related rates and limits will come into force, affecting both employment related payments, and compensation payments for tribunal awards. We have set out some of the key changes below:
Compensation Limits
|
Maximum unless stated |
6 April 2021 |
6 April 2022 |
|
Week’s pay (basic award/redundancy payment) |
£544 |
£571 |
|
Compensatory award for unfair dismissal (statutory cap)* |
£89,493 |
£93,878 |
|
Statutory redundancy payment: up to 30 weeks’ pay |
£16,320 |
£17,130 |
|
Unfair dismissal basic award: up to 30 weeks’ pay |
£16,320 |
£17,130 |
|
Breach of right to be accompanied: up to 2 weeks’ pay |
£1,088 |
£1,142 |
|
Breach of flexible working regulations: up to 8 weeks’ pay |
£4,352 |
£4,568 |
|
Failure to give written particulars of employment: 2 or 4 weeks’ pay |
2 weeks: £1,088 4 weeks: £2,176 |
2 weeks: £1,142 4 weeks: £2,284 |
*The statutory cap does not apply where the reason for the dismissal was that the Claimant was carrying out health and safety activities, made a protected disclosure, or was selected for redundancy for one of these reasons. This remains unchanged and the compensatory award in these circumstances remains uncapped.
There will be no changes in relation to compensation for a failure to inform and consult for collective redundancy or a TUPE transfer in 2022-2023.
Employment related payments
In addition to the above, as of 3 April 2022 (in relation to family-friendly rights) and 6 April 2022 (in respect of statutory sick pay), there will also be an increase in statutory payments for time off work as set out below:
|
Maternity/adoption pay prescribed rate (33 weeks maximum) |
£151.97 (each week) |
£156.66 (each week) |
|
Paternity pay (2 weeks ordinary paternity pay) |
£151.97 (each week) |
£156.66 (each week) |
|
Shared parental pay (39 weeks, less any weeks spent by the child’s mother or adopter in receipt of SMP, MA or SAP) |
£151.97 (each week) |
£156.66 (each week) |
|
Statutory sick pay |
£96.35 (each week) |
£99.35 (each week) |
National Minimum Wage rates are also due to increase from 1 April 2022.
The new rates can be found here.
It is important to ensure that you are prepared for the upcoming increases in respect of the national minimum wage, and any other statutory payments that may be applicable to your staff (such as statutory sick pay or maternity / adoption pay) by April 2022 to avoid any issues, and possibly claims from your employees with regards to being paid incorrectly. In addition, whilst the changes to compensation rates may not impact you immediately, it is important to bear in mind that the amount of compensation that could be awarded in the event that one of your employees brings a successful claim is significant, particularly in cases where compensation is uncapped. It is therefore important to ensure you get things right at the outset.
Related expertise
You may be interested in...
Opinion
Employment status: An important reminder on the use of substitution clauses
Press Release
DWP calls on Browne Jacobson to support in procurement after awarding new contract
Guide
Resident doctors vote to strike: Key legal considerations for the NHS
Press Release
Browne Jacobson advises SKIMS on lease of a landmark Regent Street store
Legal Update
Significant amendments to the Employment Rights Bill unveiled
Legal Update
Consultation on the new School Support Staff Negotiating Body
In Person Event
Mock Employment Tribunal
Legal Update - Employment Rights Bill
The Employment Rights Bill: Is it here yet?
Opinion
Pride Month: A time to review DEI
Opinion
Employer redundancy guide: Sourcing alternative employment
Legal Update
DEI in school governance: Key themes and insights
Guide
Using AI for recruitment: The data issues
Guide
The socio-economic duty: Shifting mindsets for true social mobility
Legal Update
Trans matters in health for trusts and acute settings: The decision in For Women Scotland
Press Release
Browne Jacobson’s School Leaders Survey illustrates concerns over financial resilience ahead of spending review
Press Release
Majority of UK organisations remain committed to sustainability and ESG, says new research
Opinion
Disciplinary procedures and mental health: Employer considerations
Opinion
Supreme Court gender ruling: Ensuring inclusion in the workplace
Legal Update
Celebrating diversity and inclusion in the NHS: Equality, Diversity, and Human Rights Week 2025
Legal Update
Supporting mental wellbeing in the workplace: Practical steps for businesses
Legal Update
A New chapter for families: Reflecting on the first month of the introduction of neonatal care leave
Legal Update
Trans matters in care: The decision in For Women Scotland
Legal Update
Trans matters in sport: The decision in For Women Scotland
Opinion
EHRC releases guidance for employers after Supreme Court ruling on definition of woman
Legal Update
2025/26 employment rates and limits: Are costs increases having a negative impact on the job market?
Legal Update
The concept of sex is binary: For Women Scotland v The Scottish Ministers Supreme Court case explained
Legal Update
Updated Modern Slavery Act Transparency Guidance: Key obligations and steps for businesses
Legal Update
Do whistleblowing protections extend to external job applicants?
Legal Update - Employment Rights Bill
The Employment Rights Bill: What the new amendments mean for employers
On-Demand - Care Focus webinar series
Care Focus: Regulatory and employment
Legal Update
Fair conduct dismissal: Guidance from the Court of Appeal
Legal Update
Employment healthcare briefing: March 2025
Press Release
Browne Jacobson advises Obsequio Group on strategic expansion
Press Release
Browne Jacobson advises Mercia Ventures on £3.9m investment in highways drainage specialist Crown Plus
Legal Update
The ripple effect: How US DEI shifts are impacting UK and Ireland businesses
On-Demand
EdCon 2025: Top five takeaways
Opinion
That’s Asda price: Tribunal considers that retail roles are of equal value to distribution centre jobs
Legal Update
Transformative leadership: In conversation with Lauren Thorpe
Legal Update
Reflecting our communities: The push for diversity in school governance
