New tribunal compensation limits in force from 1 February 2011
The Employment Rights (Increase of Limits) Order 2010 sets out the new compensation limits for tribunal claims where the event giving rise to compensation or payment occurs on or after 1 February 2011. The maximum amount of a week’s pay used to calculate a basic award in unfair dismissal cases increases to £400; the maximum compensatory award rises to £68,400.
The Employment Rights (Increase of Limits) Order 2010 sets out changes to the compensation limits for tribunals awards and certain employment-related payments. The key figures are as follows: (i) the maximum amount of a week’s pay (used for calculating a redundancy payment or for various awards including the unfair dismissal basic award)increases from £380 to £400; (ii) the maximum amount for an unfair dismissal compensatory award rises from £65,300 to £68,400; (iii) the maximum guarantee payment per day (where the employee is ‘laid off’ under S.28 ERA 1996) increases from £21.20 to £22.20.
The new limits mean that the maximum basic award for unfair dismissal will be £12,000, which, when added to the new limit for the compensatory award, makes the maximum total award for unfair dismissal £80,400 (other than in specified cases, e.g. public interest disclosures, where no limit to the compensatory award element applies).
The new rates apply where the event giving rise to compensation or payment occurs on or after 1 February 2011. For example, in the case of unfair dismissal the rates apply to all dismissals where the effective date of termination falls on or after this date.
February 2011
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
