News | Compensation limits to increase
Businesses should be aware that compensation limits will increase on 1st February 2011.
For example, the maximum compensatory award for unfair dismissal will increase to £68,400 from £65,300 and the maximum amount of “a week’s pay” will increase to £400 from £380. This is for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal.
The award for unlawful inducement relating to trade union membership or activities, or unlawful inducement relating to collective bargaining will increase to £3300.
The minimum amount of basic award of compensation where dismissal is unfair by virtue of section 152(1) or 153 of the Trade Union and Labour Relations (Consolidation) Act 1992 (the “1992 Act”) and section 100(1)(a) and (b), 101A(d), 102(1) or 103 of the Employment Rights Act 1996 (the “1996 Act”) will increase to £5000.
The minimum amount of compensation where an individual is excluded or expelled from a union in contravention of section 174 of the 1992 Act and not admitted or re-admitted by the date of a tribunal application will increase to £7600.
The limit on the amount of guarantee payment payable to an employee in respect of any day will increase to £22.20.
