In April statutory rates of pay and maximum awards in the Employment Tribunal increase. Given current inflation, the increases this year are higher compared to previous years. Employers must ensure they adequately budget for the rise in staffing costs.

The key changes to rates and limits that employers need to be aware of are set out below.

Employment Tribunal Awards

New Vento bands

To take account of the Retail Prices Index (RPI) measure of inflation, from 6 April 2023, Employment Tribunal awards for injury to feelings will be as follows:

• A lower band of 1,100 to 11,200 for less serious cases
• A middle band of 11,200 to 33,700 for cases which do not merit an award in the upper band
• An upper band of 33,700 to 56,200 for the most serious cases
• Amounts over 56,200 can be awarded in the most exceptional cases

There are separate rules in respect of claims presented in Scotland so that the bands remain subject to paragraph 12 of the Presidential Guidance as originally issued on 5 September 2017.

Changes to compensation for unfair dismissal and redundancy pay

The new rates implemented by the Employment Rights (Increase of Limits) Order 2023 apply where an employee’s effective date of termination is on or after 6 April 2023. The changes are as follows:

• The compensatory award will increase from 93,878 to 105,707 (an inflation-based increase of over 12%), albeit there is still the cap of 52 weeks’ gross pay in circumstances where this amount is lower than the maximum compensatory...

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