 The Employment Rights (Increase of Limits) Order 2008Mark Minns, 18 February 2009
The Employment Rights (Increase of Limits) Order 2008 sets out revised compensation limits that apply with effect from 1st February 2009.
The key changes are as follows:
> the maximum compensatory award in an unfair dismissal claim increases from £63,000 to £66,200;
> the maximum basic award in an unfair dismissal claim increases from £9,900 to £10,500;
> the maximum statutory redundancy payment that can be made increases from £9,900 to £10,500;
> the limit on a ‘week’s pay’ as used in the calculation of the basic award for unfair dismissal and statutory redundancy payments increases from £330 to £350.
Where the relevant event (ie. the dismissal) occurred prior to 1st February 2009 the old limits will apply.
However, the new limits will apply to all situations where the relevant event took place after 1st February 2009.
For example, an employee dismissed as redundant on or after 1st February 2009 would be entitled to have their redundancy payment calculated on the basis of the new figures. Similarly, if that employee felt that he or she had been unfairly dismissed, then the applicable limit on the compensatory award would be £66,200. |
