The maximum unfair dismissal award will reduce from £66,200 to £65,300 from 1 February 2010.
The Employment Rights (Revision of Limits) Order 2009 revises the limit in line with the decrease in the retail prices index between September 2008 and September 2009 - this was -1.4%.
There was a one-off increase to the maximum week’s pay used to calculate certain awards, including statutory redundancy pay and the basic unfair dismissal award, on 1 October 2009. This rose from £350 to £380. The legislation that brought this one-off rise into effect excluded, for a single time only, the operation of s.34 of the Employment Relations Act 1999, which normally changes this limit, along with the maximum unfair dismissal award, on 1 February. On this occasion, the maximum of a week’s pay for these purposes will therefore remain at £380.
For further information see Maximum unfair dismissal compensation award to decrease.
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