The government has published the new compensation limits that will come into force from 1st February 2012. These limits apply to certain employment tribunal awards and other amounts payable under employment legislation.
The notable changes 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 £400 to £430;
- the maximum compensatory award for unfair dismissal goes up from £68,400 to £72,300;
- 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 £5,000 to £5,300.
The new rates apply where the event giving rise to compensation or payment occurs on or after 1 February 2012. 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.
For a free initial consultation please call 01202 499255 and Kate or Paul will be happy to discuss any questions you may have.
Comments