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Unfair dismissal and redundancy payment limits to rise

Unfair dismissal and redundancy payment limits to rise

The limit on unfair dismissal and redundancy payment awards made in certain employment rights cases is set to rise from February 1st, the Department for Business, Enterprise and Regulatory Reform (BERR) has announced.

Under the annual index-linked formula, the increased limits will affect the basic and compensatory awards for unfair dismissal, the limit on guarantee payment made when employees are not provided with work, statutory redundancy payments and the minimum basic award for unfair dismissal in health and safety and certain other cases.

The new increases will apply to cases where the event giving rise to the compensation entitlement occurs on or after February 1st.

Cases in which the event occurred prior to this date will still be subject to the Employment Rights (Increase of Limits) Order 2006.

Created in June 2007, BERR aims to help ensure the success of UK businesses and raise productivity.