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Increases to maximum and minimum Tribunal compensation and SMP

View profile for Lucy Sorell
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It’s that time of year again! With effect from 6 April 2018, the following increases to current Tribunal compensation ranges will apply: 

  • The maximum compensatory award for unfair dismissal will be increased from £80,541 to £83,682. 
  • The cap on a week’s pay for the purposes of statutory redundancy payments, unfair dismissal basic awards etc will be increased from £489 to £508. 
  • The minimum basic award for unfair dismissal will be increased from £5,970 to £6,203. 

Employers will be well used to this annual change in compensation limits. This may result in some terminations being strategically timed to avoid (for example) the increase in a week’s pay for SRP purposes. Given that a week’s pay is usually calculated at the point where notice is given, this timing could involve bringing forward the whole redundancy process so that consultation is completed and notice is given well in advance of 6 April. 

In addition, Statutory Maternity Pay will be increasing with effect from 1 April 2018, from £140.98 to £145.18 – a relatively large increase when compared to those in recent years, which ranged from £0 - £1.60.

 

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