• New Compensation Limits – 1 February 2011

    The 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 380 to GBP 400; • the maximum compensatory award for unfair dismissal rises from GBP 65,300 to GBP 68,400; • guarantee pay increases from the rate of GBP 21.20 a day to GBP 22.20 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 4,700 to GBP 5,000. The new rates apply where the event giving rise to compensation or payment occurs on or after 1 February 2011. 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.

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