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Employment Tribunal Awards – New Limits

The Employment Rights Order 2009 implements the annual increase in Tribunal awards, as approved by the Employment Relations Act 1999. The latest increases came into force on 1st February 2010.

Although the increases in the limit of compensation that can be awarded for unfair dismissal at Employment Tribunals are annual, last year the awards for a week’s pay for redundancy were increased twice, in February 2009 and October 2009.

Accordingly these amounts have not been increased any further, and are due to be revised again in February 2011

Unusually, and for the first time ever, three of the limits have actually decreased due to the reduced cost of living last year, whilst many of the other limits have remained the same.

 

Subject of Provision

Old Limits

New Limits

i

Limit on amount of compensatory award for unfair dismissal

£66,200

£65,300

ii

Maximum amount of a “week’s pay” for the purpose of calculating the basic or additional award of compensation for unfair dismissal or redundancy payment

£380

£380

iii

Limits on amount of any one week payable to an employee in respect of debt to which Part XII of the 1996 Act* applies and which is referable to a period of time

£380

£380

iv

Minimum amount of basic award of compensation where dismissal is unfair by virtue of Section 152(1) and 153 of the 1992 Act**

£4,700

£4,700

v

Minimum amount of basic award of compensation where dismissal is unfair by virtue of Section 100(1)(a) or (b), 101A(d), 102(1) or 103 of the 1996 Act*

£4,700

£4,700

vi

Minimum amount of compensation awarded by the employment Appeal Tribunal where individual excluded or expelled from union in contravention of Section 174 of the 1992 Act**

£7,300

£7,200

vii

Amount of award for unlawful inducement relating to trade union membership or activities, or relating to collective bargaining of Section 145E(3) of the 1992 Act**

£3,100

£3,100

viii

Limit on amount of guarantee payment payable to an employee in respect of any day

£21.50

£21.20

* Employment Rights Act 1996
** Trade Union and Labour Relations (Consolidation) Act 1992

These changes will apply where the event giving rise to the right to compensation took place or after 1st February 2010.

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