UD Compensation increases
Employment Tribunal awards for successful claims involving unfair dismissal have increased from 6 April 2019. The increases will apply where the Effective Date of Termination (EDT) falls on or after 6 April 2019. The maximum cap on the compensatory award has increased to £86,444 from £83,682 or a year’s pay, whichever is lower; the minimum basic award for certain unfair dismissals relating to health and safety, employee representative, trade union and occupational pension trustee reasons has increased to £6,408 from £6,203.
Compensation for breach of contract claims, such as awards for wrongful dismissal, remain capped at £25,000, if brought in the Employment Tribunal.
At the same time there has been an increase in the award of damages for injury to feelings and psychiatric injury. Such awards are made in line with the so-called “Vento bands” (taking their name from a Court of Appeal case that established this approach). The Lower Vento Band will be £900 to £8,800; the Middle Vento Band £8,800 to £26,300; the Upper Vento Band £26,300 to £44,000, with compensation higher than £44k in n exceptional cases.