Increase in compensation limits for employment claims

The Employment Rights (Increase of Limits) Order 2010 came into force on 1 February 2011, increasing the compensation available for a range of statutory employment rights where the date of breach falls on or after 1 February 2011.

| Filed under compensation redundancy statutory employment rights unfair dismissal

The Employment Rights (Increase of Limits) Order 2010 came into force on 1 February 2011, increasing the compensation available for a range of statutory employment rights where the date of breach falls on or after 1 February 2011.

For most employers the key increases are in respect of a “week’s pay” for the purposes of calculating statutory redundancy pay and basic awards for unfair dismissal, and the compensatory award for unfair dismissal. The maximum amount of a “week’s pay” rises from £380 to £400 gross per week, resulting in maximum statutory redundancy compensation/basic award of £12,000. After a reduction in the available award in 2010, the maximum compensatory award for unfair dismissal is increased from £65,300 to £68,400.

A copy of the Order, which contains a complete list of the compensation increases, is available at the link below.