Legislation has been laid before Parliament, providing for the annual round of tribunal compensation limit increases.
The main increases in the maximum awards are:-
• the limit on the amount of a week’s pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal will increase from £430 to £450;
• the maximum amount for a compensatory award goes up from £72,300 to £74,200; and
• 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 £ 5,300 to £ 5,500.
Paul Burton, Employment Solicitor, says “The new rates apply where the event giving rise to compensation or payment occurs on or after 1 February 2013. 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. 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.”
For a free initial meeting please call 01202 499255 and Kate or Paul will be happy to discuss any questions you may have.
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