New tribunal award limits come into force on 1 February 2009
3rd December 2008
The Employment Rights (Increase of Limits) Order 2008 SI 2008/3055 has now been published. The Order increases the limits on certain employment tribunal awards and other amounts payable under employment legislation from 1 February 2009.
The notable changes are:
• the limit on the amount of a week's pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal will increase from GBP 330 to GBP 350;
• the maximum compensatory award for unfair dismissal goes up from GBP 63,000 to GBP 66,200;
• guarantee pay increases from the rate of GBP 20.40 a day to GBP 21.50 a day; and
• 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 GBP 4,400 to GBP 4,700.
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, the old limits will still apply, irrespective of the date on which compensation is awarded.
Further information:
http://www.opsi.gov.uk/si/si2008/uksi_20083055_en_1
Source: OPSI, 01/12/2008
For further guidance and advice, please click here to contact a specialist employment lawyer.