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

Pall Mall Court
61-67 King Street
Manchester M2 4PD

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...

Solicitors’ Professional Indemnity Insurance: Run-off and alternative regulators

18th July, 2018

Special Focus: Solicitors’ Professional Indemnity Insurance Run-off – it dominates the thoughts of sole practitioners and partners in smaller law firms in my experience and restricts the ambitions of firms. The SRA could help law firms by relaxing their rules on run-off cover on their Solicitors’ Professional Indemnity Insurance to help firms merge or close more easily. This would protect... Read More »

Senior employment lawyer joins Theatr Clwyd board

17th July, 2018

Helen Watson, Head of Employment Law at Aaron & Partners LLP, has taken up an invitation to become a Trustee of both the Trust Board and the Main Board Theatr Clwyd has bolstered its senior leadership team with the appointment of an experienced employment law solicitor to support its vision of being at the forefront of theatre making... Read More »

Why there is more to CSR than just boosting a company’s ego

6th July, 2018

When a business invests in its community it deserves praise – but it must go beyond that, writes Helen Watson, a trustee at Claire House and partner at Aaron and Partners Solicitors. Corporate social responsibility (CSR) is the link between a company and the community in which it operates. As a trustee on charity boards including Claire House... Read More »

Contact Us