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.
