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STATUTORY INSTRUMENTS
2026 No. 310
TERMS AND CONDITIONS OF EMPLOYMENT
The Employment Rights (Increase of Limits) Order 2026
Made - - - - 16th March 2026
Laid before Parliament 18th March 2026
Coming into force - - 6th April 2026
The Secretary of State makes this Order in exercise of the powers conferred by section 34 of the
Employment Relations Act 1999(1).
Citation, commencement, extent and interpretation
1.—(1) This Order may be cited as the Employment Rights (Increase of Limits) Order 2026.
(2) This Order comes into force on 6th April 2026.
(3) This Order extends to England and Wales and Scotland.
(4) In this Order—
“the 1992 Act” means the Trade Union and Labour Relations (Consolidation) Act 1992(2); and
“the 1996 Act” means the Employment Rights Act 1996(3).
Revocation
2. The Employment Rights (Increase of Limits) Order 2025(4) is revoked.
Increase of limits
3. In the provisions set out in column 1 of the Schedule to this Order (generally described in
column 2), for the sums specified in column 3 substitute the sums specified in column 4.
(1) 1999 c. 26. Section 34(1) was amended by the Employment Relations Act 2004 (c. 24), Schedule 1, paragraph 42(1), (2)
and (3), and by the Employment (Allocation of Tips) Act 2023 (c. 13), section 12(4). Section 34(2) was amended by the
Enterprise and Regulatory Reform Act 2013 (c. 24), section 22(1) and (2). Section 34(3) was amended by the Enterprise and
Regulatory Reform Act 2013, section 22(1) and (3). Section 34(4A) and (4B) were inserted by the Enterprise and Regulatory
Reform Act 2013, section 15(10). Section 34(5) was amended by the Statistics and Registration Service Act 2007 (c. 18),
Schedule 3, paragraph 11.
(2) 1992 c. 52.
(3) 1996 c. 18.
(4) S.I. 2025/348.Document Generated: 2026-04-07
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Transitional provisions
4.—(1) The revocation in article 2 and the substitution made in article 3 do not have effect in
relation to a case where the appropriate date falls before 6th April 2026.
(2) In this article “the appropriate date” means—
(a) in the case of an application made under section 67(1) of the 1992 Act(5) (compensation
for unjustifiable discipline by a trade union), the date of the determination infringing the
applicant's right;
(b) in the case of a complaint presented under section 70C(1) of the 1992 Act(6) (failure by
an employer to consult with a trade union on training matters), the date of the failure;
(c) in the case of a complaint presented under section 137(2) of the 1992 Act (refusal of
employment on grounds related to union membership) or section 138(2) of that Act
(refusal of service of employment agency on grounds related to union membership), the
date of the conduct to which the complaint relates, as determined under section 139 of
that Act(7);
(d) in the case of an award under section 145E(2)(b) of the 1992 Act (award to worker in
respect of offer made by employer in contravention of section 145A or 145B of that
Act(8)), the date of the offer;
(e) in the case of an application for an award of compensation under section 176(2) of the
1992 Act(9) (compensation for exclusion or expulsion from a trade union), the date of the
exclusion or expulsion from the union;
(f) in the case of an award under paragraph 159(1) of Schedule A1 to the 1992 Act(10), where
a worker has suffered a detriment that is the termination of the worker's contract, the date
of the termination;
(g) in the case of an award of compensation under section 27M of the 1996 Act(11) (failure
to allocate fairly, or to pay on time, qualifying tips, gratuities and service charges), the
date of the failure;
(h) in the case of an award of compensation under section 27O of the 1996 Act(12) (failure
to have a written policy or to maintain a record of qualifying tips, gratuities and service
charges), the date of the failure;
(i) in the case of a guarantee payment to which an employee is entitled under section 28(1)
of the 1996 Act (right to guarantee payment in respect of workless day), the day in respect
of which the payment is due;
(j) in the case of an award of compensation under section 49(1)(b) and (1A)(b) of the 1996
Act(13), where a worker has suffered a detriment that is the termination of the worker's
contract, the date of the termination;
(5) Section 67(1) was amended by the Employment Relations Act 2004, section 34(1) and (2).
(6) Section 70C(1) was inserted by the Employment Relations Act 1999, section 5.
(7) Sections 137(2), 138(2) and 139(1) were amended by the Employment Rights (Dispute Resolution) Act 1998 (c. 8),
section 1(2)(a). Section 139(4) was inserted by the Enterprise and Regulatory Reform Act 2013, section 8, Schedule 2,
paragraphs 1 and 6.
(8) Sections 145A, 145B and 145E were inserted by the Employment Relations Act 2004, section 29.
(9) Section 176 was substituted by the Trade Union Reform and Employment Rights Act 1993 (c. 19), section 14. Section 176(2)
was amended by the Employment Relations Act 2004, sections 34(7) and (8), 57(2) and Schedule 2.
(10) Schedule A1 was inserted by the Employment Relations Act 1999, section 1(3) and Schedule 1.
(11) Section 27M was inserted by the Employment (Allocation of Tips) Act 2023 (c. 13), section 7.
(12) Section 27O was inserted by the Employment (Allocation of Tips) Act 2023, section 8.
(13) Section 49(1) was amended by the Employment Rights (Dispute Resolution) Act 1998, section 1(2)(a), by the Children and
Families Act 2014 (c. 6), section 129(3)(a), and by S.I. 2021/618. Section 49(1A) was inserted by the Children and Families
Act 2014, section 129(3)(b).
2Document Generated: 2026-04-07
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(k) in the case of an award of compensation under section 63J(1)(b) of the 1996 Act(14)
(employer's failure, refusal or part refusal following request in relation to study or
training), the date of the failure or the date on which the employer notified the employee
of a decision to refuse the application (or part of it) on appeal (as the case may be);
(l) in the case of an award of compensation under section 80I(1)(b) of the 1996 Act (complaint
to an employment tribunal relating to an application for contract variation), the date of the
failure in relation to the application, the decision to reject the application or the notification
by the employer under section 80G(1D) of the 1996 Act(15);
(m) in the case of an award under section 112(4) of the 1996 Act (award in relation to unfair
dismissal), the effective date of termination as defined by section 97 of that Act(16);
(n) in the case of an award under section 117(1) or (3) of the 1996 Act(17), where an employer
has failed to comply fully with the terms of an order for reinstatement or re-engagement
or has failed to reinstate or re-engage the complainant in accordance with such an order,
the date by which the order for reinstatement (specified under section 114(2)(c) of that
Act) or re-engagement (specified under section 115(2)(f) of that Act), should have been
complied with;
(o) in the case of entitlement to a redundancy payment by virtue of section 135(1)(a) of the
1996 Act (dismissal by reason of redundancy), the relevant date as defined by section 145
of that Act(18);
(p) in the case of entitlement to a redundancy payment by virtue of section 135(1)(b) of the
1996 Act (eligibility for a redundancy payment by reason of being laid off or kept on short-
time), the relevant date as defined by section 153 of that Act;
(q) in the case of entitlement to a payment under section 182 of the 1996 Act (payments by
the Secretary of State), the appropriate date as defined by section 185 of that Act;
(r) in the case of a complaint presented under section 11(1) of the Employment Relations
Act 1999(19) (failure or threatened failure to allow the worker to be accompanied at the
disciplinary or grievance hearing, to allow the companion to address the hearing or confer
with the worker, or to postpone the hearing), the date of the failure or threat;
(s) in the case of an award made under section 38(2) of the Employment Act 2002(20) (failure
to give statement of employment particulars etc), the date the proceedings to which that
section applies were begun;
(t) in the case of an increase in an award in pursuance of section 38(3) of the Employment
Act 2002(21) (failure to give statement of employment particulars etc), the date the
proceedings to which that section applies were begun;
(14) Section 63J was inserted by the Apprenticeships, Skills, Children and Learning Act 2009 (c. 22), section 40(1) and (2).
(15) Section 80I was inserted by the Employment Act 2002 (c. 22), section 47(1) and (2). Section 80G was inserted by the
Employment Act 2002 (c. 22), section 47(1) and (2). Subsection (1D) of section 80G was inserted by the Children and Families
Act 2014, section 132(1) and (4).
(16) Section 112(4) was amended by Employment Relations Act 1999, section 44, Schedule 9(11) and the Employment Act 2002,
section 53, Schedule 7, paragraphs 24 and 36. Section 97(1) was amended by S.I. 2002/2034. Section 97(6) was repealed by
the Employment Relations Act 1999, section 44, Schedule 9(2).
(17) Section 117(1) was amended by the Employment Rights (Dispute Resolution) Act 1998, section 1(2)(a). Section 117(3) was
amended by the Employment Relations Act 1999, sections 33(2), 44 and Schedule 9(11), and the Employment Act 2002,
section 53, Schedule 7, paragraphs 24 and 37.
(18) Section 145(2) was amended by S.I. 2002/2034. Section 145(7) was repealed by the Employment Relations Act 1999,
section 44, Schedule 9(2).
(19) Section 11(1) was amended by the Employment Relations Act 2004, section 37(2).
(20) Section 38(2) was amended by the Enterprise Act 2016 (c. 12), section 33, Schedule 5, paragraph 12(a), and S.I. 2019/731.
(21) Section 38(3) was amended by the Enterprise Act 2016, section 33, Schedule 5, paragraph 12(b), and S.I. 2019/731.
3Document Generated: 2026-04-07
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(u) in the case of an award of compensation under regulation 4(1)(b) of the Exclusivity Terms
in Zero Hours Contracts (Redress) Regulations 2015(22), where a worker has suffered a
detriment that is the termination of the worker's contract, the date of the termination; and
(v) in the case of an award of compensation under regulation 9(1)(b) of the Exclusivity Terms
for Zero Hours Workers (Unenforceability and Redress) Regulations 2022(23), where a
worker has suffered a detriment that is the termination of the worker's contract, the date
of the termination.
Kate Dearden
Parliamentary Under-Secretary of State
16th March 2026 Department for Business and Trade
(22) S.I. 2015/2021.
(23) S.I. 2022/1145.
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Schedule Article 3
Increase of limits
Column 1 Column 2 Column 3(24) Column 4
Relevant statutory Subject of provision Old limit New Limit
provision
Section 145E(3) of the Amount of award for £5,735 £5,993
1992 Act(25) unlawful inducement
relating to trade
union membership or
activities or for
unlawful inducement
relating to collective
bargaining.
Section 156(1) of the Minimum amount of £8,763 £9,157
1992 Act(26) basic award of
compensation where
dismissal is unfair by
virtue of section 152(1)
or 153 of the 1992 Act.
Section 176(6A) of the Minimum amount of £13,384 £13,986
1992 Act(27) compensation where
individual excluded or
expelled from union
in contravention of
section 174 of the 1992
Act and not admitted
or re-admitted by date
of the application for
compensation.
Section 27M(1) of the Limit on amount of £5,135 £5,366
1996 Act(28) compensatory award
for failure to allocate
and pay tips fairly.
Section 27O(2) of the Limit on amount of £5,135 £5,366
1996 Act(29) compensatory award
for failure to have
a written policy on
dealing with qualifying
tips, gratuities and
service charges, or
failure to create a
(24) The sums in this column were inserted by S.I. 2025/348 which is revoked by this Order.
(25) Section 145E(3) was inserted by the Employment Relations Act 2004, section 29.
(26) Section 156(1) was amended by the Employment Rights Act 1996, section 240, Schedule 1, paragraph 56(1) and (9)(a).
(27) Section 176(6A) was inserted by the Employment Relations Act 2004, section 33(6).
(28) Section 27M(1) was inserted by the Employment (Allocation of Tips) Act 2023, section 7.
(29) Section 27O(2) was inserted by the Employment (Allocation of Tips) Act 2023, section 8.
5Document Generated: 2026-04-07
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item of legislation is currently only available in its original format.
Column 1 Column 2 Column 3(24) Column 4
Relevant statutory Subject of provision Old limit New Limit
provision
record of how they
have been dealt with.
Section 31(1) of the Limit on amount £39 £41
1996 Act of guarantee payment
payable to an employee
in respect of any day.
Section 120(1) of the Minimum amount of £8,763 £9,157
1996 Act(30) basic award of
compensation where
dismissal is unfair by
virtue of section 100(1)
(a) or (b), 101A(d),
102(1) or 103 of the
1996 Act.
Section 124(1ZA)(a) of Limit on amount of £118,223 £123,543
the 1996 Act(31) compensatory award
for unfair dismissal.
Section 186(1)(a) and Limit on weekly £719 £751
(b) of the 1996 Act amount payable to
an employee, pro-rated
where referable to
a shorter period, in
respect of a debt to
which Part 12 of the
1996 Act applies and
which is referable to a
period of time.
Section 227(1) of the Maximum amount of £719 £751
1996 Act(32) “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.
(24) The sums in this column were inserted by S.I. 2025/348 which is revoked by this Order.
(30) Section 120(1) was amended by S.I. 1998/1833.
(31) Section 124(1ZA) was inserted by S.I. 2013/1949.
(32) Section 227(1) was amended by the Employment Act 2002, section 53, Schedule 7, paragraphs 24 and 47, and the
Apprenticeships, Skills, Children and Learning Act 2009, section 40, Schedule 1, paragraphs 1 and 9.
6Document Generated: 2026-04-07
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EXPLANATORY NOTE
(This note is not part of the Order)
This Order increases, from 6th April 2026, the limits applying to certain awards which Employment
Tribunals can make, and other sums payable under employment legislation, as specified in the
Schedule to this Order.
Under section 34(2) of the Employment Relations Act 1999 (“the 1999 Act”), if the retail prices index
for September of a year is higher or lower than the index for the previous September, the Secretary of
State is required to change the specified sums, by Order, by the percentage of the increase or decrease
(rounded up or down as specified in section 34(3) of the 1999 Act). The increases made by this Order
reflect the increase in the retail prices index of 4.5% from September 2024 to September 2025.
The increases apply where the event giving rise to the entitlement to compensation or other payment,
or as relevant, the date proceedings were begun, occurred on or after 6th April 2026. The sums
previously in force under the Employment Rights (Increase of Limits) Order 2025 (S.I. 2025/348)
are preserved by article 4 of this Order in relation to cases where the relevant event was before 6th
April 2026.
A full impact assessment has not been produced for this Order because section 34 of the 1999 Act
provides for indexation according to a pre-determined formula linked to the retail prices index.
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