Compensation limits to increase

 From 1st February 2011 compensation limits will increase as follows:

  • Maximum compensatory award for unfair dismissal will increase to £68,400 from £65,300
  • Maximum amount of “a week’s pay” will increase to £400 from £380. This is for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal


Other changes will include:

  • Amount of award for unlawful inducement relating to trade union membership or activities, or for unlawful inducement relating to collective bargaining will increase to £3300
  • Minimum amount of basic award of compensation where dismissal is unfair by virtue of section 152(1) or 153 of the Trade Union and Labour Relations (Consolidation) Act 1992 (the “1992 Act”) will increase to £5000. 
  • Minimum amount of compensation where individual excluded or expelled from union in contravention of section 174 of the 1992 Act and not admitted or re-admitted by date of tribunal application will increase to £7600. 
  • Limit on amount of guarantee payment payable to an employee in respect of any day will increase to £22.20
  • Minimum amount of basic award of compensation where dismissal is unfair by virtue of section 100(1)(a) and (b), 101A(d), 102(1) or 103 of the Employment Rights Act 1996 (the “1996 Act”) will increase to £5000.

    For further advice and information on employment law, contact Alan Kennedy on 0114 256 4788 or email alan@wosskowbrown.co.uk
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

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