Our strategic partner, Peninsula, have written an article explaining the increasing compensation costs that have now come into effect. Please read below for the full details.
From the 6th of April 2023 it gets more expensive for employers who do things wrong and end up in employment tribunal.
Example 1:
A 35-year-old employee with 6 years’ service, earning £800 a week, is unfairly dismissed.
- They will get a basic award and a compensatory award.
- What it will cost for the basic award: £3,858
- What it would have cost if the dismissal happened last month: £3,426
- It’s gone up £432!
- What it will cost in compensatory award: maximum 52 weeks’ pay but capped at £105,707
- What it would have been if the dismissal happened last month: maximum 52 weeks’ pay but capped at £93,878
- Maximum cap has gone up £11,829!
Example 2:
Employee was not given a written statement of main terms by the start of employment
- What it will cost the employer if the maximum is awarded: £2,572
- What it would have cost before it went up: £2,284
- It’s gone up £288!
Important!
In 2022, an average of 600 claims were made every single week!
Our strategic partner Peninsula are HR and Health & Safety experts and can assist our members with queries or issues including, but not limited to:
- Policies and procedures
- Employment law and tribunal assistance
- HR mentoring and legal representation
- Employee benefits
If you would like more information about their services, please register your interest by completing the form here.