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New Compensation Limits

From 1 February 2011, increases to limits on some employment tribunal awards come into force following the publication of The Employment Rights (Increase in Limits) Order 2010. The increases are as follows:

– The maximum compensatory award for unfair dismissal increases from £65,300 to £68,400;

– The new maximum for a week’s pay (in relation to statutory redundancy payment calculations and basic awards for unfair dismissal claims) increases to £400 (currently £380);

– The minimum basic award in health and safety, trade union, employee representative and occupational pension trustee issues, in relation to unfair dismissal claims, will increase to £5,000 (currently £4,700); and

– In light of these changes, the maximum unfair dismissal award will be £80,400.

The new compensation limits only apply where the event subject to the limits occurs on or after 1 February 2011. For instance, where the effect date of termination in an unfair dismissal claim is before 1 February 2011, the old rates will apply.

Date: 15.12.10

For more information on the new compensation limits and how they will effect potential awards in employment tribunal claims please contact Jane Sinnamon(jane.sinnamon@collingwoodlegal.com.)

The information given in this article is up to date at the time of preparation. However, Collingwood Legal can accept no liability or responsibility for any loss incurred as a consequence of actions taken based on this report. We would recommend that you take legal advice. We would be happy to help.

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