New employment tribunal award limits come into force
10 March 2009
The maximum awards that can be made by employment tribunals rose on 1st February in line with the increase in the retail price index.
The limit on the amount of any compensatory award for unfair dismissal increased from £63,000 to £66,200. The maximum amount of a nominal week’s pay – the amount used for calculating various awards including redundancy payments – increased from £330 to £350. The limit on the amount of guaranteed payment to an employee in respect of any particular day rose from £20.40 to £21.50.
The increases are made under the Employment Rights (Increase of Limits) Order 2008 and are in line with the rise in the Retail Price Index between September 2007 and September 2008.Compensation Limits
Employment right
Maximum award
Unfair dismissal
Week’s pay
Basic award
Compensatory award
£350
£10,500
£66,200Redundancy pay
£10,500
Discrimination
No limit
Dismissal for union/employee representative or pension trustee reasons
Basic award
Compensatory award
£10,500 (minimum £4,700)
£66,200Dismissal for health and safety reasons
Basic award
Compensatory award
£10,500 (minimum £4,700)
No limitDismissal for making a protected disclosure
Basic award
Compensatory award
£10,500
No limitGuarantee pay
£107.50 (5 days in any period of 3 months) (£21.50 a day)
Contract claims in a tribunal
£25,000
For further information or advice on Employment matters please contact Justine Watkinson
Head of Employment on jw@law.uk.com or call 01244 318131.
