New limits on the amount of compensation employment tribunals can award took effect last month, potentially leading to higher costs for employers found to have unfairly dismissed an employee.

In cases where an employee’s termination was effective on or after 6 April 2017, the cap on compensation for unfair dismissal increased to £80,541 from £78,962.

Meanwhile, the maximum statutory redundancy payment and basic award for unfair dismissals rose by £300 from £14,370 to £14,670.

The new rates were provided for in the Employment Rights (Increase of Limits) Order 2017, and so were not one of the range of provisions set aside following the announcement of a snap general election on 8 June 2017.

Link: Statutory redundancy pay to increase from 6 April 2017