01332 340 211

Compensation Limits Set to Rise

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From 1 February 2011, the limit on the amount of compensation that can be awarded by the Employment Tribunal is to increase.

Where an employee is successful in a claim for unfair dismissal the maximum compensatory award that they would be able to recover will be £68,400. This is a significant increase bearing in mind that in February 2010 this figure actually reduced for the first time ever from £66,200 to £65,300.

The limit on weekly gross pay, which is used for calculating the basic award in unfair dismissal claims and redundancy payments, is also set to increase from £380 to £400.

The new limits will only be effective for dismissals taking place on or after 1 February 2011.

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