New Compensation Limits
Compensation limits in the Employment Tribunal will increase from 1st February 2012. In particular, the statutory cap on a weeks’ pay, used for calculating Statutory Redundancy Payments, will increase from £400 to £430 and the maximum compensatory award that can be made in a successful unfair dismissal case will be increased by nearly £5,000 to £72,300. The rate of Guarantee Payments payable where an employee has been temporarily laid off, will increase to £23.50 per day and the minimum compensatory award in unfair dismissal cases where the employee was dismissed because of health and safety or trade union activities will go up to £5,300. These increases will apply to all Tribunal awards made from 1stFebruary 2012 onwards.