Dismissal And Redundancy Payment Increases

The limits on payments and awards made to workers by employment tribunals in certain employment rights cases will rise from 1st February, under the annual index-linked formula.

The increased limits affect:

* statutory redundancy payments;

* the basic and compensatory awards for unfair dismissal;

* the limit on guarantee payment made when employees are not provided with work; and,

* the minimum basic award for unfair dismissal in health and safety and certain other cases.

Table of increases in limits, effective from 1 February 2009.
(SI 2008 No. 3055)

Column 1               Column 2              Column 3    Column 4
Relevant statutory     Subject of provision  Old Limits  New
provision                                                Limits
Section 145E(3) of the Amount of award for   £2,900      £3,100
Trade Union and Labour unlawful inducement
Relations              relating to trade
(Consolidation) Act    union membership or
1992                   activities, or for
                       unlawful inducement
                       relating to
                       collective
                       bargaining.
Section 156(1) of the  Minimum amount of     £4,400      £4,700
1992 Act               basic award of
                       compensation where
                       dismissal is unfair
                       by virtue of section
                       152(1) or 153 of the
                       1992 Act.
Section 176(6A) of the Minimum amount of     £6,900      £7,300
1992 Act               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.
Section 31(1) of the   Limit on amount of    £20.40      £21.50
Employment Rights Act  guarantee payment
1996 Act               payable to an
                       employee in respect
                       of any day.
Section 120(1) of the  Minimum amount of     £4,400      £4,700
1996 Act               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 1996 Act.
Section 124(1) of the  Limit on amount of    £63,000     £66,200
1996 Act               compensatory award
                       for unfair dismissal.
Paragraphs (a) and (b) Limit on amount in    £330        £350
of section 186(1) of   respect of any one
the 1996 Act           week payable to an
                       employee in respect
                       of debt to which Part
                       XII of the 1996 Act
                       applies and which is
                       referable to a period
                       of time.
Section 227(1) of the  Maximum amount of "a  £330        £350
1996 Act               week's pay" for the
                       purpose of
                       calculating basic or
                       additional award of
                       compensation for
                       unfair dismissal or
                       redundancy payment.