Increase in UK Compensation Limits

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From 1 February 2013 the maximum compensation that the Employment Tribunal can award for unfair dismissal (save in the exceptional cases such as whistleblowing, where no cap applies to the compensatory award) will increase, as will the weekly wage figure for calculating statutory redundancy payments.

The Employment Rights (Increase of Limits) Order 2012 will come into force on 1 February 2013. As a result, for dismissals in respect of which the effective date of termination falls on or after 1 February 2013:

- a week's pay (for the purposes of calculating the basic award in unfair dismissal cases and statutory redundancy payments) will be capped at £450 - the current limit is £430; and

- the maximum compensatory award for unfair dismissal will be capped at £74,200 the current limit is £72,300.

Please see full alert below for more information.

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Topics:  Compensatory Awards, Unfair Dismissal

Published In: Administrative Agency Updates, Civil Remedies Updates, Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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