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Employment tribunal compensation limits go up

Employment tribunal compensation limits go up

This month, the limits on payouts and awards made in employment tribunals rose.

Among the changes that were introduced on February 1st was an increase in the maximum compensatory award for unfair dismissal from £63,000 to £66,200.

The changes were unveiled by the Department for Business, Enterprise and Regulatory Reform.

As well as unfair dismissal cases, statutory redundancy cases were also affected.

Under the new rules, the limit on the amount of a week's pay for the purposes of calculating statutory redundancy payments rose from £330 to £350.

Responding to the increase in statutory redundancy payment limits, the Trades Union Congress said it was a welcome move but added that it did not go far enough.

According to the organisation, the weekly limit should be at least £500 in order to provide a financial cushion for the newly-employed and to restore the real value of the payments, which it claimed has fallen since statutory redundancy pay was introduced in 1965.