New compensation limits in force from 1 February 2009
The Employment Rights (Increase of Limits) Order 2008 SI 2008/3055 has been published increasing the limits on certain employment tribunal awards and other amounts payable under employment legislation from 1 February 2009. Under the Order the maximum compensation award for unfair dismissal will rise from £63,000 to £66,200. The key changes are:
- the limit on the amount of a week’s pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal will increase from £330 to £ 350 (as a result the maximum basic award increases from £9,900 to £10,500);
- 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 £4,400 to £4,700.
- the maximum compensatory award for unfair dismissal increases from £63,000 to £66,200.
- the additional award where an employer fails to comply with a re-instatement or re-engagement order increases as follows: (i) minimum rises from £8,580 to £9,100; (ii) maximum rises from £17,160 to £18,200;
- guaranteed pay (where an employee would normally work but is not provided with work due to a diminishing requirement or other occurrence affecting the business) increases from £ 20.40 per day £ 21.50 per day. The new rates apply where the event giving rise to compensation or payment occurs on or after 1 February 2009. 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. Where the dismissal or relevant event falls before 1 February 2009, the old limits will still apply, irrespective of the date on which compensation is awarded. For further information see: The Order
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
