The maximum compensation award for an employee who has been unfairly dismissed will be reduced from £66,200 to £65,300 in April, the government has announced.

Under the Employment Relations Act 1999, if the retail prices index for September of a year is higher or lower than the previous September, the government is required to change the maximum award.

The revised amount reflects the decrease of 1.4% in the index from September 2008 to September this year.

The number of unfair dismissal cases accepted between April 2008 and March 2009 rose by 29% to 52,711, up from 40,941 the previous year.

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Meanwhile, the rate of Statutory Maternity Pay, Statutory Adoption Pay and Statutory Paternity Pay will go up from £123.06 per week to £124.88 in April, but Statutory Sick Pay will remain at £79.15 per week, the Department for Work and Pensions has announced.

In September, the government announced that it was postponing plans to extend SMP from nine to 12 months and extend paternity rights.

Unfair dismissal decrease

Find out why the maximum unfair dismissal payment will decrease next year and why the level of weekly pay used to calculate statutory redundancy pay is staying the same at XpertHR.