The Employment Rights (Increase of Limits) Order 2022, SI 2022/182 has been laid before Parliament, setting out the familiar annual increase in the upper limits for employment-related claims.
The amount of ‘a week’s pay’ for the purposes of section 227, Employment Rights Act 1996 has increased from £544 to £571. This figure is used for a number of purposes, including to calculate a statutory redundancy payment and the basic award due for unfair dismissal.
The upper limit for compensatory unfair dismissal awards has also increased, on this occasion significantly from £89,493 to £93,878.
These revised rates will apply to dismissals where the effective date of determination occurs on or after 6 April 2022.