New Compensation Limits for 2012
New compensation limits have been confirmed by the Government
and will take effect in February 2012.
The maximum compensatory award for unfair dismissal will rise to
£72,300, from the current maximum of £68,400. The limit on a week's
pay, used for calculating statutory redundancy payments and the
unfair dismissal basic award (as well as many other payments) will
rise to £430, from the current limit of £400.
The minimum basic award for unfair dismissal (where the
dismissal is for health and safety, trade union
membership/activities, employee representative or occupational
pension trustee reasons) will rise to £5,300, from £5,000.
The new rates apply where the dismissal or event giving rise to
the compensation or payment occurs on or after 1 February 2012.
This means that for unfair dismissal claims the new rates will
apply to all dismissals where the date of termination is either on
or after the 1 February 2012.
The Employment Rights (Increase of Limits) Order
2011.