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New Compensation Limits Effective 1st February 1

United Kingdom
01/02/2010
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New compensation limits relevant to awards made by employment tribunals will apply from today.

Most notably the maximum compensatory award will be reduced from £66,200 to £ 65,300 where the effective date of termination is on or after 1st February. This is the first time that this limit has been reduced. It reflects the decrease in the RPI by 1.4% over the year from September 2008 to September 2009. Two other limits have also been reduced. The limit on the amount of a guarantee payment is now £21.20 (instead of £21.50) and the minimum compensation where an individual is expelled or excluded from a union is now £7,200 (instead of £7,300).

The statutory cap on a week’s pay which is relevant to various legal situations, including calculation of statutory redundancy pay and the basic award in unfair dismissal cases is unaffected and remains at £380. This was increased in October 2009 and will not change until February 2011. Other limits have remained the same.

To access a copy of The Employment Rights (Revision of Limits) Order 2009 which sets out the changes in full click here.

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