New compensation limits to apply from 1 February 2011

16 December 2010

Under new legislation, limits on certain employment tribunal awards and other statutory employment payments will increase from February next year. The most significant increases are those relating to the maximum basic and compensatory awards for unfair dismissal.

For dismissals occurring on or after 1 February 2011, the maximum gross weekly salary for the purposes of a basic award will increase from £380 to £400. When multiplied by highest possible age factor and length of service this will amount to a maximum basic award of £12,000. In addition, the maximum compensatory award for unfair dismissal will rise from £65,300 to £68,400.

Taking the above into account, the total maximum unfair dismissal award will rise by £3,700 to a total of £80,400.

James Upton
Partner
James Upton
Telephone
+44 (0) 161 817 7262
Email
james.upton@hilldickinson.com

Back to latest Insights >>

Insights archive >>



Hill Dickinson has a wealth of experience in dealing with the full range of employment and pensions issues. If you have any queries relating to the above, or any other legal matter, please do not hesitate to contact us for advice.