New limits for unfair dismissal and redundancy payments from 6 April 2022

News article

Increase in the limits for payments and awards to workers in employment rights cases

The increased limits, announced by the Department for the Economy (DfE), relate to a range of employment rights including:

  • statutory redundancy payments;
  • the basic and compensatory awards for unfair dismissal;
  • the limit on guarantee payments made when employees are not provided with work; and
  • the minimum basic award for unfair dismissal in health and safety and certain other cases.

New rates from 6 April 2022

  • The limit on the compensatory award for unfair dismissal rises from £89,669 to £94,063
  • The maximum amount of ‘a week’s pay’ for the purpose of calculating redundancy payment rises from £566 to £594.

Legislation adjusting limits relating to a range of employment rights is made annually to reflect changes in the rate of inflation as measured by the Retail Prices Index (RPI). The figures are different to those in Great Britain.

First published 13 May 2022