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From 6 April, the statutory limits on the level of compensation that employment tribunals can award go up. 

Tribunals will also have the power to impose financial penalties of up to £5,000 on employers, where it determines that the employer has breached worker's rights and the breach has one or more aggravating factors.

In addition, recent cases law suggest that the general position will be that a successful claimant will recover tribunal by way of a costs order against their employer. All of this combines to make employment tribunal claims potentially more expensive to deal with than before.

From 6 April 2014 the new limits will be:

  • Week's pay £464 (currently £450)
  • Maximum basic award/statutory redundancy payment £13,920 (currently (13,500)
  • Compensatory award £76,574 (currently £74,200)

That means that a basic award + a compensatory award combined, now has a maximum of £90,494. Claims for compensation in discrimination or whistleblowing cases remain potentially unlimited



Standout firm known for its personal insolvency work for clients including private companies, individuals and governmental institutions. Frequently acts for insolvency practitioners, assisting with the realisation of assets, both in the UK and abroad.

Chambers and Partners

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