The compensatory award for successful unfair dismissal claims is based on the tribunal's assessment of the employee's loss of earnings. Prior to the coming into force in October 1999 of s.34 of the Employment Relations Act 1999, the compensation was subject to a statutory maximum of £12,000, and the annual uplift in the maximum was a matter for individual ministerial decision. The Act increased the maximum unfair dismissal compensatory award from £12,000 to £50,000, and replaced the discretionary power to review the limit with a specific mechanism linked to inflation. The amount changes on 1 February each year in line with the retail prices index (RPI) for September of the previous year.
| Effective date of termination on or after |
Maximum compensatory award |
| 1 February 2012 |
£72,300 |
| 1 February 2011 |
£68,400 |
| 1 February 2010 |
£65,300 |
| 1 February 2009 |
£66,200 |
| 1 February 2008 |
£63,000 |
| 1 February 2007 |
£60,600 |
| 1 February 2006 |
£58,400 |
| 1 February 2005 |
£56,800 |
| 1 February 2004 |
£55,000 |
| 1 February 2003 |
£53,500 |
| 1 February 2002 |
£52,600 |
| 1 February 2001 |
£51,700 |
| 25 October 1999 |
£50,000 |
| - |
£12,000 |
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