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ARTICLE · 03 JANUARY 2012

New Compensation Limits

Boyes Turner
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The Department for Business, Innovation and Skills (BIS) has set new compensation limits which will come into effect from 1 February 2012.

United KingdomEmployment and HR
Barry Stanton
Barry Stanton

The Department for Business, Innovation and Skills (BIS) has set new compensation limits which will come into effect from 1 February 2012. These will apply where the event giving rise to the compensation occurred on or after 1 February 2012.

The key changes are:

  • Increase on the limit for a week's pay for calculating statutory redundancy pay, unfair dismissal basic award etc to £430 (currently £400).
  • Unfair dismissal maximum compensatory award increased to £72,300 (currently £68,400).

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

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