Annual Inflation-Linked Changes in ET Awards for 2026

The Employment Rights (Increase of Limits) Order 2026, which details the annual inflation-linked changes in limits on the compensation amounts that can be awarded by an Employment Tribunal (ET), will come into force on 6 April 2026. The new rates apply where the appropriate date falls on or after that date.

The main changes are:

• The maximum amount of a week's pay for the purpose of calculating a redundancy payment, or for various awards including the basic or additional award of compensation for unfair dismissal, increases from £719 to £751. The maximum award of an employee's statutory redundancy pay therefore increases from £21,570 to £22,530;
• The minimum amount of compensation where an individual is found to have been unlawfully excluded or expelled from a trade union increases from £13,384 to £13,986; and
• The statutory maximum compensatory award for unfair dismissal increases from £118,223 to £123,543.

There is no statutory cap on the amount an ET can award in discrimination cases.