Tribunal award and statutory redundancy limits raised

The government has announced the new limits that will apply for calculating compensation awards granted by employment tribunals.

The annual increases in maximum limits of compensation have been laid before Parliament under the Employment Rights (Increase of Limits) Order 2008.

The new rates will apply to dismissals taking place on or after 1 February 2009 – if an employee is dismissed before 1 February the old rates will apply, regardless of when the tribunal hearing takes place.

The headline increases are:

  • Maximum compensation for unfair dismissal is to be increased from £63,000 to £66,200
  • Maximum amount of “a week’s pay” (for calculating statutory redundancy pay, or the basic award for unfair dismissal) is to be increased from £330 to £350
  • Maximum statutory redundancy payment: £9,900 to £10,500.

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