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Annual increase in employment compensation limits

18/12/2008

Annual increase in employment compensation limits The annual increase in the limits on certain employment tribunal awards and other amounts payable under employment legislation have been published. These increases take effect from 1 February 2009 and include;

-The limit on a weeks pay used in calculating amongst other things, redundancy pay and the unfair dismissal basic award will be increased from £330 to £350.

-The maximum compensatory award for unfair dismissal is increased from £63,000 to £66,200.

-The maximum award for redundancy increases from £9,900 to £10,500.

-The minimum award for unfair dismissal due to health and safety matters, being an employee representative, being a member of a trade union or occupation pension trustee will increase from £4,400 to £4,700.

It must be borne in mind that these changes come into force only when the date of termination or event occurs on or after 1 February 2009, events beforehand will be subject to the previous limits.

For further details on the changes, please contact Robert Gibson at Samuel Phillips Law Firm (robertgibson@samuelphillips.co.uk).