Scotland: MacRoberts discusses annual increase to Scottish employment tribunal compensation & increased rates of pay from April 2023
Employers should take note of the latest updates to employment tribunal compensation limits and increased rates of pay, which will take effect in April 2023.
Annual increase to employment tribunal limits
Employers based in England, Scotland and Wales should take note of the latest update to employment tribunal compensation limits from the Employment Rights (Increase of Limits) Order 2023 (SI 2023/318) (“the Order”) which has just been published:
The Order includes the following changes which will apply from 6 April 2023:
- the limit on “a week’s pay” used to calculate statutory redundancy pay and the basic award for unfair dismissal claims will increase from £571 to £643;
- the maximum compensatory award for unfair dismissal increases from £93,878 to £105,707; and
- the minimum basic award for certain unfair dismissals (including health and safety dismissals) increases from £6,959 to £7,836.
This annual increase takes account of the Retail Prices Index inflation rate from September last year (which has increased by 12.6% since then). These figures will apply to all dismissals taking effect on or after 6 April 2023.
Annual increase to discrimination compensation
The Presidents of the Employment Tribunals have issued the annual update to the Vento guidelines. These guidelines set out the bands of compensation which can be awarded in discrimination cases. This type of compensation is known as an injury to feelings award. These updated figures will apply to cases presented on or after 6 April 2023.
The new bands are:
- a lower band of £1,100 to £11,200 (one-off or less serious cases of discrimination);
- a middle band of £11,200 to £33,700 (cases of discrimination that do not merit an award in the upper band); and
- an upper band of £33,700 to £56,200 (the most serious cases of discrimination), with the most exceptional cases capable of exceeding £56,200.
Increased rates of pay
Employers based in England, Scotland and Wales should also note the following upcoming key dates and rate changes:
1 April 2023
The new rates for the National Minimum Wage and National Living Wage that will apply from 1 April 2023 are as follows:
- for workers aged 23 and over, the rate will increase from £9.50 per hour to £10.42 per hour;
- for workers aged 21-22, the rate will increase from £9.18 per hour to £10.18 per hour;
- for workers aged 18-20, the rate will increase from £6.83 per hour to £7.49 per hour;
- for workers aged 16-17 (who are not apprentices), the rate will increase from £4.81 per hour to £5.28 per hour; and
- the apprentice rate will increase from £4.81 per hour to £5.28 per hour.
2 April 2023
- Statutory maternity or adoption pay: those who qualify are entitled to receive £172.48 per week (up from £156.66 per week) after the first six weeks until the end of their ordinary maternity leave.
- Statutory paternity pay: those who qualify are entitled to the lower of £172.48 per week (up from £156.66 per week) or 90% of their average weekly earnings per week for a maximum of two weeks.
- Statutory parental bereavement pay: those who qualify are entitled to the lower of £172.48 per week (up from £155.66 per week) or 90% of their average weekly earnings per week.
6 April 2023
- Statutory sick pay (“SSP”): the rates will increase from £99.35 to £109.40 per week. The average gross weekly earnings required to qualify for SSP will remain at £123 or more.