Annual increase in tribunal awards

United Kingdom
05/12/2003
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The annual increase in compensation limits for claims in the Employment Tribunal (effective from 1 February 2004) has been announced.

The Secretary of State has made the Employment Rights (Increase of Limits) Order 2003, increasing compensation in line with the increase in the Retail Price Index from September 2002 to September 2003.

The increases apply where the event giving rise to the entitlement to compensation (e.g. dismissal) or other payments occurs on or after 1 February 2004. The limits previously enforced are preserved by the Order in relation to cases where the relevant event was before that date.

In particular, the main changes are:

  1. the limit on amount of compensatory award for unfair dismissal will increase from £53,500 to £55,000;
  2. the maximum amount of "a week's pay" for the purposes of calculating basic or additional award of compensation for unfair dismissal or redundancy payment will increase from £260 to £270.

A table of the increase of limits and a copy of the Order can be accessed by clicking here.

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