Source: XpertHR upfront Date: 01/02/2010 Publisher: XpertHR

February 1: Maximum unfair dismissal compensation award decreases 


The maximum compensatory award for unfair dismissal claims decreases from £66,200 to £65,300. 

Since the Employment Relations Act 1999 came into force, the compensatory award for unfair dismissal claims has been linked to the RPI for September of the previous year. The maximum award has increased in line with the RPI since 1999, but reduces with effect from 1 February 2010 to reflect the fall in the RPI. The latest addition to the XpertHR quick reference section, which pulls together in one place key employment law facts and figures, shows the changes to the maximum award since the introduction of the Employment Relations Act 1999. 

The decrease in the RPI also requires a reduction in the limit on the amount of a guarantee payment in respect of any day and the minimum compensation where an individual is excluded or expelled from a union in contravention of s.172 of the Trade Union and Labour Relations (Consolidation) Act 1992, and not admitted or re-admitted following a tribunal declaration. 

The new limits apply where the event that gives rise to the award or payment occurs on or after 1 February 2010. 

Other awards are not affected by the decrease in the RPI, including the maximum amount of a week's pay used to calculate statutory redundancy pay and the unfair dismissal basic and additional awards. 

Also

The XpertHR quick reference section sets out the award limits payable in successful tribunal claims, including dismissal claims, claims for compensation against employers and unions for breaches of collective rights and claims that rights in relation to pay and statutory payments have been breached. 

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