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LEGAL UPDATE – Increase in limits on tribunal awards

Increase in limits on tribunal awards 

From 1 February 2008, under the Employment Rights (Increase of Limits) Order 2007, a number of limits applying to tribunal awards and other amounts payable under employment legislation will increase. The new limits will be applicable where the event that gives rise to the award or payment occurs on or after 1 February 2008. 

The key changes are as follows: 

  • The limit on the amount of a week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal will increase from £310 to £ 330.      
  • The maximum compensatory award for unfair dismissal goes up from £60,600 to £63,000.     
  • Guarantee pay increases from the rate of £ 19.60 a day to £ 20.40 a day.     
  • The minimum basic award in cases where the dismissal was unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £4,200 to £4,400. 

The new rates apply in cases where the event giving rise to compensation or payment occurs on or after 1 February 2008, e.g. in the case of unfair dismissal the rates apply to all dismissals where the effective date of termination falls on or after this date. Where the dismissal or relevant event falls before 1 February, the old limits will still apply, irrespective of the date on which compensation is awarded. 

The Order can be viewed at:
http://www.opsi.gov.uk/si/si2007/uksi_20073570_en_1

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