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Tribunal Compensation Limits Increase

BY Heather Kemmett
Employment Law & HR
BG Purple

New legislation has been passed which will increase maximum employment tribunal awards from 1 February 2012.

The most significant change is the increased maximum award for unfair dismissal. The current limit of £68,400 will rise to £72,300 next February. The rise will affect sackings where the date of dismissal is on or after 1 February 2012, regardless of when the award is made. Another key change affects the limit on a week’s pay used to calculate redundancy payments, and unfair dismissal basic awards. This will rise to £430 from the current maximum of £400. The maximum redundancy payment or basic award that can be made will rise from the current £12,000 to £12,900.

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