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Compensation Claims for Unfair Dismissal

Updated: Mar 11

Unfair dismissal claims are a significant aspect of employment law in the UK. They provide a legal recourse for employees who believe they have been unjustly removed from their positions. The compensation awarded in these cases is subject to statutory limits, which are updated periodically. This article will discuss the updated claim limits effective from 6 April 2024 and highlight some recent UK cases with high compensations.

Updated Claim Limits

The Employment Rights (Increase of Limits) Order 2024 has introduced new limits for compensation, weekly pay for redundancy, and other rates. These changes, which come into force on 6 April 2024, are as follows:

  • The limit on the amount of compensatory award for unfair dismissal has increased from £105,707 to £115,115.

  • The limit on a week’s pay, which is used to calculate a redundancy payment or various awards including the basic or additional award of compensation for unfair dismissal, has risen from £643 to £700.

  • The minimum amount of basic award of compensation where dismissal is unfair by virtue of sections 152 (1) or 153 of the 1992 Act has increased from £7,836 to £8,533.

  • The minimum amount of basic award of compensation where dismissal is unfair by virtue of sections 100 (1) (a) and (b), 101A (d), 102 (1) or 103 of the 1996 Act has also risen from £7,836 to £8,533.

Noteworthy UK Cases

While the statutory limits set the maximum compensatory award for most unfair dismissal claims, there are exceptions where the cap does not apply, such as dismissals due to whistleblowing or for raising certain health and safety issues. In these cases, the compensatory awards can be significantly higher. For instance, one of the highest awards in an unfair dismissal claim in the past year was £165,000.

In a recent case, a claimant successfully argued that his dismissal occurred because he had made protected disclosures. He was awarded approximately £1.6 million in compensation, including a 20% uplift because of a failure to follow the Acas Code on disciplinary and grievance.


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Can Canko

Employment, Contracts and Commercial Law

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