Legislative Upper Limits for ET Awards effective 6th April 2022?




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The Employment Rights (Increase of Limits) Order 2022

What is it & how does it affect you?

The Employment Rights (Increase of Limits) Order 2022 provides the increased upper limits effective 6th April 2022 which employment tribunals utilise.

Each year these limits are reviewed and updated in line with the retail prices index (RPI).

Increases are stipulated below:-

• Statutory guarantee pay paid during a period of lay off by the employer increasing from £30 to £31
• limit on a week’s pay for calculating redundancy and the unfair dismissal basic award increasing from £544 to £571 (proportionally higher increase than previous years)
• increase to a week’s pay resulting in the maximum basic award for statutory redundancy payment and unfair dismissal at £17,130, increased from £16,320
• maximum compensatory award for unfair dismissal increased to
£93,878 or a year’s pay, whichever is lower.

The above changes mean that the most an employment tribunal could award for an unfair dismissal in relation to the maximum basic and compensatory award, has increased to £111,008.

The new limits relating to dismissal compensation will apply for any dismissals where the effective date of termination is on, or after, the 6 April 2022.

Please note, any dismissals  arising prior to this date (up to an including 5th April, 2022) will have the previous compensation limits applied to any award.

There are unlimited compensation awards for discrimination, therefore, dismissals where discrimination applies under the Equality Act 2010 could lead to a higher financial award than stipulated within this article.

Given there is no financial barrier to employees or ex-employees wishing to make a tribunal claim, and the above figures shows that pay outs for claims are increasing.

The annual increase to tribunal awards, along with other factors such as reputational damage and increases to the cost of living (which may encourage employees who would not have previously contemplated a claim, to do so), means it has never been more important to follow correct procedures to avoid being taken to tribunal.

With regards to dismissals, this means they will need to ensure they have a fair reason to dismiss, are following a fair procedure and are acting reasonably in all the circumstances.

Experts,  ELHR Ltd. are happy to assess if your company is compliant – fill in our contact form for a free initial consultation should you require further  assistance.  Please call us now on 01788 432077 for an initial free consultation.


ELHR Ltd. are Employment Lawyers & Human Resources Consultants.  We’re experts who can help you to keep up to date with legislative changes, apply statute and the latest case law precedents to your business. We limit the risk of litigation & help you & your business with best practice to ensure you gain the best you can from your team. 

For employers, we’re your 1 stop for HR & underwrite the employment law risk as long as you follow our advice*.


For employees & workers, we undertake a merits assessment to evaluate whether they are likely to succeed in a claim against your employer.  ELHR Ltd. can evaluate whether there is a reasonable prospect of success. 

We pride ourselves in being ethical and honest, in our approach.   


Contact us now for an Initial Free Consultation.  Fill in our online form, or call us on 0116 3261636



What should companies be doing?

Being flexible as an employer is paramount given the unprecedented changes we’ve seen arising through COVID-19 pandemic circumstances.  Hybrid working, culture, a good working environment, benefits package (not necessarily financial) speaks volumes. Therefore, if issues arise at work, don’t let them get out of hand. Call us for an initial free consultation, we’d be happy to assist you in any issues you’re facing. 

ELHR Ltd. are here to help and can assist in pointing you in the right direction.

How can we help?

From onboarding and recruitment strategy that aligns with your company mission statement and values, through to helping you grow and retain staff if they’re aligned with your business.

We provide bespoke employment contracts, progressive HR Polices and Procedure supporting your business grow.  Helping you to retain your staff with Hybrid working and flexibility through uncertain times.

Advising on continuous employment law legislative changes, restrictive covenants protecting your business, and performance management, our goal is to create a culture and atmosphere that facilitates successful recruitment, growth and retention of staff due to high morale, health and wellbeing, team building on the lessons learned through the pandemic.

Our bespoke Human Resources Consultancy is not formulated as a package. We listen, understand and use our expertise to create a pathway for the companies we are proud to work with.

At ELHR, we work with you to create a culture that limits the risk of litigation through staff engagement surveys, change management during uncertain times, and succession planning. Looking to prepare for problems in order to avoid running into them.

Whether you need support  in relation to Government restrictions,  grants like CJRS, flexible furloughing, etc. we’re here to help.

We can provide you with a continual advice on retainer, or set time frames re projects, we have the skills and capacity to make a real difference in providing flexibility, protection and added value during this unprecedented journey.

Contact us via our online form, or give us a call for your initial free consultation and we can discuss your specific issues you’re facing as an employee, or employer.