New Compensation Limits Effective 1st February 2

United Kingdom

New compensation limits relevant to awards made by employment tribunals will apply from today.

The main changes are:

  • The statutory limit on a week’s pay which is relevant to various legal situations, including the calculation of statutory redundancy pay and the basic award in unfair dismissal cases is increased from £400 to £430.
  • The limit on the compensatory award for unfair dismissal is increased from £68,400 to £72,300.

The new figures apply where the event giving rise to the entitlement to compensation (e.g. dismissal) or other payments occurs on or after 1st February. The previous limits remain in relation to cases where the relevant event was before 1st February.

The increases reflect the increase in the retail prices index of 5.6% from September 2010 to September 2011.

To access a copy of The Employment Rights (Increase of Limits) Order 2011 which sets out the changes in full click here.