Chester 01244 405555

Grosvenor Court
Foregate Street Chester
Cheshire CH1 1HG
DX: 19990 Chester

Shrewsbury 01743 443 043

Lakeside House
Oxon Business Park
Shrewsbury SY3 5HJ
DX: 148563 Shrewsbury 14

Manchester 0844 800 8346

Office Number 129
Manchester Business Park
3000 Aviator Way
Manchester M22 5TG

Send us a message
Our Offices

New Compensation Limits

4th January, 2012

In December 2011 The Employment Rights (Increase of Limits) Order revealed the revised limits on certain employment tribunal awards and other amounts payable under employment legislation from 1 February 2012.

The Order increases the maximum compensatory award for unfair dismissal to £72,300.  At present the maximum is £68,400.

The limit on the amount of a week’s pay for the purpose of calculating statutory redundancy payments and the basic award for unfair dismissal will increase from £400 to £430.  The maximum amount of statutory redundancy payment and basic award for unfair dismissal for an employee who meets the maximum service test will increase from £12,000 to £12,900.

The minimum basic award in unfair dismissal cases (where the dismissal was unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons) will increase from £5,000 to £5,300.

There will be an increase in the maximum amount of a guarantee payment payable to an employee from £22.20 per day to £23.50 per day.

The amount of award for unlawful inducement relating to trade union membership or activities, or for unlawful inducement relating to collective bargaining has increased from £3,300 to £3,500.

The new rates will come into force where the event giving rise to compensation or payment occurs on or after 1 February 2012.  Therefore if a dismissal takes place before 1 February 2012, the old limits will still apply; irrespective of the date on which compensation is awarded.

The limits, which are adjusted in line with the Retail Price Index, are reviewed annually and should come as no surprise to employers.  However, they should be borne in mind when considering commercial settlements in employment law claims.

If you are considering redundancies or are facing unfair dismissal claims and need any assistance with queries or issues, please do not hesitate to contact Catherine Kerr in the Employment Law team.

You might also be interested in...

Opening up the Market in the United Arab Emirates

10th September, 2018

This is the first in a series of  6 articles with regards to establishing a business in the... Read More »

What to do if you receive a statutory demand…

9th August, 2018

We have been approached by a number of clients who have received a statutory demand, either personally or to their company, and they have asked us what to do about it. One business was contacted by a company demanding payment of a debt owed under a contract for TV advertising in a shopping mall.  We presume – but... Read More »

Farming solicitor Ben Brassington joins top law firm in Shrewsbury

3rd August, 2018

Agriculture and Estates specialist Ben Brassington has strengthened the services offered by Top 200 legal firm Aaron & Partners LLP A dairy farmer with more than 18 years’ experience as a Partner in his family’s farming business has been appointed by a top legal firm in Shrewsbury. Ben Brassington, who has also been working for several years as... Read More »

Contact Us