Under the Employment Rights (Increase of Limits) Order 2025 (the “Employment Order”), there will be changes to the compensation limits that apply to certain awards that Employment Tribunals can make and other amounts payable under employment legislation with effect from 6 April 2025. The Employment Order applies to England, Wales and Scotland.

The new limits will apply where the ‘appropriate date’ for the cause of action occurs on or after 6 April 2025. For example, in the case of unfair dismissal, the rates apply to all dismissals where the effective date of termination falls on or after this date. If the appropriate date (e.g., the date of dismissal) falls before 6 April 2025, the previous limits mentioned below will apply irrespective of the date on which the compensation is awarded. 

Here is a brief overview of the changes which will take effect from 6 April 2025 under the Employment Order:

Additionally, the Social Security Benefits Up-rating Order 2025 (the “Social Security Order”) will increase the rate of payment for a range of statutory leave entitlements, also with effect from 6 April 2025. Most of the statutory benefits will increase by 1.7% from the previous year’s rates, in line with inflation. These changes are part of the UK Government’s reforms seeking to greater support those in financial need.

Here is a brief overview of the changes which will take effect from 6 April 2025 under the Social Security Order:

Maya Sterrie, trainee in the Employment Litigation practice, contributed to this article.

Leave a Reply

Your email address will not be published. Required fields are marked *