April is always marked as a busy time of the year for employment lawyers and HR professionals having to adjust to increased limits for awards.
Below we have set out the new limits for:
National Living & Minimum Wages 2026 & 2027 applicable as at 1 April 2026.
The Annual Update from the Presidents of the Employment Tribunals to the Vento guidelines, applicable as of 6 April 2026.
The Employment Rights (Increaser of Limits) Order 2026 applicable as of 6 April 2026 – selected provisions only.
The removal of the cap on Unfair Dismissal claims as of 1 January 2027
1. National Living & Minimum Wages 2026 & 2027 applicable as at 1 April 2026.
2. The Annual Update from the Presidents of the Employment Tribunals to the Vento guidelines are applicable as of 6th April 2026:
The guidelines give ranges for injury to feelings awards for injury to feelings in discrimination cases, varying according to severity.
3. The Employment Rights (Increase of Limits) Order 2026 which is effective in England, Scotland and Wales, introduces increased limits for various employment tribunal awards, statutory payments and redundancy payments effective after 6 April 2026 - selected provisions only.
Provision
Maximum compensatory award for unfair dismissal: subject to a maximum cap of a year’s pay
Limit on a week’s pay when calculating redundancy and unfair dismissal
Minimum basic award for unfair dismissal and statutory redundancy
The daily limit on statutory guarantee pay
2025/26
£118,223
Unlawful Trade Union Inducement: The maximum award for unlawful inducement relating to trade union activities or for unlawful inducement relating to collective bargaining £719
Minimum basic award for dismissal on trade union, health and safety, occupational pension scheme trustee, employee representative and working grounds
Minimum amount for compensation where an individual is excluded or expelled from union and not admitted or re-admitted by the date of the tribunal application
2026/27
£8,763 £13,384 £123,543 £751 £22,530 £41 £5,993 £9,157 £13,986
Additionally, statutory maternity pay (after first six weeks), statutory adoption pay (after first six weeks) statutory paternity pay, statutory shared parental pay and statutory parental bereavement pay will be £194.32 per week (increased form £187.18) or 90% of the employees average weekly earnings, whichever is lower. The same increase applies to maternity allowance from 6 Aprill 2026. The 26-week service requirement for Paternity Leave and Unpaid Parental Leave will be removed, making them “day-one” rights.
Statutory sick pay will also rise to £123.25 per week from £118.75 per week from 6 April 2026. Statutory sick pay will be payable from the first day of absence.
4. From 1 January 2027, the government will abolish the current £123,543 cap on compensation for ordinary unfair dismissal, alongside reducing the qualifying service period from two years to six months. This shift makes employment tribunal compensation uncapped and permits employees with only six months’ service to bring an Unfair Dismissal claim.
Maximum limit on compensation for Unfair Dismissal claims
Qualifying service period for bringing an Unfair Dismissal claim
