The Employment Rights (Increase of Limits) Order 2011 SI 2011/3006 has been published. The Order will increase the limits on certain employment tribunal awards and other amounts payable under employment legislation from 1 February 2012.
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 400 to GBP 430
• the maximum compensatory award for unfair dismissal goes up from GBP 68,400 to GBP 72,300
• guarantee pay increases from the rate of GBP 22.20 a day to GBP 23.50 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 5,000 to GBP 5,300.
The new rates apply where the event giving rise to compensation or payment occurs on or after 1 February 2012. 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.