From 6 April 2023, the limit on the compensatory award for unfair dismissal will rise from £94,063 to £105,915, while the maximum amount of “a week’s pay” for the purpose of calculating redundancy payments will rise from £594 to £669.

The increased limits relate to a range of employment rights including statutory redundancy payments; the basic and compensatory awards for unfair dismissal; the limit on guarantee payments made when employees are not provided with work; and the minimum basic award for unfair dismissal in health and safety and certain other cases.

Legislation adjusting limits relating to a range of employment rights is made annually to reflect changes in the rate of inflation as measured by the Retail Prices Index (RPI).