Change in annual compensation limits for redundancy and unfair dismissal awards

We are at that time of year when increases in tribunal awards and calculations are due to be applied and this year is no different from any other. The amount an individual can receive if made redundant or unfairly dismissed will increase from 1st February 2012 as follows:

The cap on ‘a week’s pay’ used in calculating redundancy payments or the basic award in an unfair dismissal claim will increase from £400 to £430.

The maximum compensatory award that an individual can receive if unfairly dismissed will increase from £68,400 to £72,300.

Employers should be aware that if an employee has been given notice in January but the notice expires in February, it is the new increased figures that will apply.

Finally there is also an increase in the minimum basic award which applies in certain specific circumstances, such as deemed automatic dismissal for a trade union related reason, from £5000 to £5,300.

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