Increases to employment tribunal awards
January 2008
The annual increases to the limits on awards for claims in the employment tribunals take effect from 1 February 2008. Sarah Maddock sets out the details.The main increases due to come into effect are as follows:
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the maximum amount of a week’s pay for statutory purposes (including the calculation of redundancy payments and the basic award for unfair dismissal) will be increased from £310 to £330; | |
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the maximum compensatory award for unfair dismissal claims will rise from £60,600 to £63,000; and | |
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the minimum basic award for certain types of unfair dismissal (such as dismissals for reasons of trade union membership, health and safety duties, pension scheme trustee duties or acting as an employee representative) will increase from £4,200 to £4,400. |
These changes are effected by the
Employment Rights (Increase of Limits) Order 2007. In relation to cases of unfair dismissal, the new limits will apply where the effective date of termination of the employment contract is on or after 1 February 2008.
Whilst this increase is in line with the September 2007 Retail Price Index (RPI) of 3.9%, the Secretary of State has not exercised the power in the 2006 Work and Families Act to make a one-off increase in the maximum amount of a week’s pay. The increase in the maximum amount of a week’s pay is slightly over the 3.9% RPI, but this is due to the requirement that the Secretary of State rounds up this figure to the nearest £10.
Whilst this increase is in line with the September 2007 Retail Price Index (RPI) of 3.9%, the Secretary of State has not exercised the power in the 2006 Work and Families Act to make a one-off increase in the maximum amount of a week’s pay. The increase in the maximum amount of a week’s pay is slightly over the 3.9% RPI, but this is due to the requirement that the Secretary of State rounds up this figure to the nearest £10.
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