Tribunal Award and Statutory Pay Increases

paymentsFrom 1 February 2013 the maximum Employment Tribunal awards will be:

  • a week’s pay: £450 (increased from £430), used for calculating statutory redundancy payments and the basic award; and
  • unfair dismissal compensatory award: £74,200 (increased from £72,300).


This now means that the maximum unfair dismissal award can be £87,700 (maximum basic award plus maximum compensatory award). However, if the Government goes ahead with its plans to limit the cap on unfair dismissal claims (see September 2012 newsletter, Government: More red tape cuts?) then the compensatory award increase may yet be varied, as the Government is currently consulting on reducing the statutory cap to the lower of:

  • an amount between annual median earnings (currently £25,882) and three times annual median earnings (currently £77,646); or
  • the claimant’s annual net salary.

From April 2013 the weekly rate of statutory maternity/paternity/adoption pay will increase from £135.45 to £136.78. The weekly rate of statutory sick pay will rise from £85.85 to £86.70. (According to the 2012 Autumn Budget Statement, these rates will increase by 1% a year for three years from April 2013).