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ARTICLE · 04 JANUARY 2012

Increase In Compensation Limits

Dechert
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The maximum compensation that the Employment Tribunal can award for unfair dismissal (save in exceptional cases) and the basis upon which statutory redundancy payments are calculated will increase from 1 February 2012.

United KingdomEmployment and HR
Charles Wynn-Evans
Charles Wynn-Evans
Georgina Rowley
Georgina Rowley

The maximum compensation that the Employment Tribunal can award for unfair dismissal (save in exceptional cases) and the basis upon which statutory redundancy payments are calculated will increase from 1 February 2012.

The Employment Rights (Increase of Limits) Order 2011 will come into force on 1 February 2012. As a result, for dismissals in respect of which the effective date of termination falls on or after 1 February 2012:

  • a week's pay (for the purposes of calculating the basic award in unfair dismissal cases and statutory redundancy payment entitlements) will be capped at £430 (the current limit is £400).
  • the maximum compensatory award for unfair dismissal (save in the prescribed exceptional cases) will be capped at £72,300 (the current limit is £68,400).

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