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31st January 2012

Limits on tribunal awards to increase from 1 February 2012

The Employment Rights (Increase of Limits) Order 2011, which comes into force on 1st February 2012, increases the limits applying to certain awards of employment tribunals, and other amounts payable under employment legislation.

The figures reflect an RPI increase of 5.6% in the year to September 2011. In cases involving dismissal, the new figures will apply where the effective date of termination falls on or after 1 February 2012.  It should be noted that Article 4 of the Order preserves the limits in force under the Employment Rights (Increase of Limits) Order 2010 in relation to cases where the effective date of termination falls before 1 February 2012.

In view of the above, the following limits will apply:-

Maximum compensatory award for unfair dismissal:-  Current amount – £68,400,     Amount from 1st February 2012 –  £72,300

Maximum limit on a week’s pay:- Current amount – £400,  Amount from 1st February 2012 –  £430

Minimum basic award for certain unfair dismissals (dismissals for reasons of: trade union membership or activities; health and safety duties, pension scheme trustee duties; acting as an employee representative):- Current amount – £5,000,  Amount from 1st February 2012 – £5,300

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