Employment Tribunal Annual Increases Confirmed – Effective from 6 April 2026

The UK Government has confirmed the annual uplift to key statutory employment tribunal awards and limits under the Employment Rights (Increase of Limits) Order 2026 (the “Order”), which will take effect from 6 April 2026.

Key Changes

Increase to the statutory cap on a “week’s pay

The maximum value of a week’s pay (used to calculate statutory redundancy payments and the basic award for unfair dismissal) will increase from £719 to £751.

Increase to the compensatory award for unfair dismissal

The cap on the compensatory award for unfair dismissal will also increase from £118,223 or 52 weeks’ pay (whichever is lower) to £123,543 or 52 weeks’ pay (whichever is lower).

The cap will, however, be removed entirely in or around January 2027.

Wider Reforms

The increases under the Order coincide with several wider reforms taking effect in April 2026, including:

• Statutory family leave pay rates (e.g. maternity, paternity, shared parental pay) will rise to £194.32 per week from 5 April in the case of maternity leave and 6 April in all other cases.
• Reforms to Statutory Sick Pay, including removal of the lower earnings limit and waiting period and an increase in the weekly payment from £118.75 to £123.25 from 6 April 2026.
• Doubling of the maximum protective award in collective redundancy cases from 90 to 180 days’ pay from 6 April 2026.

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