Increase in compensation limits
From 1 February 2013, the limits of certain Tribunal awards and other payments will increase, including:
- The limit on a week’s pay for the purpose of calculating the basic award and statutory redundancy payments will increase from £430 to £450;
- The maximum amount of the compensatory award for unfair dismissal claims will increase from £72,300 to £74,200;
- The daily rate of guarantee payments will increase from £23.50 to £24.20; and
- The minimum basic award for certain unfair dismissal claims (including dismissals related to health and safety, employee representatives and trade unions) will increase from £5,300 to £5,500.
These increased rates will apply where the event giving rise to compensation or payment occurs after 1 February 2013, for example where the dismissal occurs after this date. For events prior to this date the current limits will still apply, irrespective of the date on which compensation is awarded or the payment made.
For further information, contact our employment rights team.
