Changes in Compensation Limits
Email Update 63
The Employment Rights (Revision of Limits) Order 2009 applies from today, 1 February 2010.
Of particular note is that the maximum compensatory award for unfair dismissal has been revised down as a consequence of a fall in the Retail Price Index.
For dismissals that are effective from today the following table sets out the compensation limits that apply:
| Type of Payment | Minimum from 1 February 2010 | Maximum from 1 February 2010 |
|---|---|---|
| Limit on a week's pay (gross) for certain purposes, including statutory redundancy pay | N/A | £380 |
| Unfair dismissal basic award | N/A | £11,400 |
| Unfair dismissal compensatory award | N/A | £65,300 (in most circumstances – but no limit for dismissals in connection with health and safety matters or public interest discolsure) |
| Unfair dismissal additional award | Lower of 26 weeks' pay or £9,880 | 52 weeks' pay (up to £19,760 ) |
| Statutory redundancy payment | N/A | £11,400 |
| Guarantee pay limit for a day's pay during short-time or temporary lay off | N/A | £21.20 a day (subject to a maximum of 5 days or £106 in any three months) |
| Basic award where the principal reason for dismissal is for trade union membership or activities | £4,700 | £11,400 |
| Basic award where the principal reason for dismissal is for carrying out activities as a health and safety representative | £4,700 | £11,400 |
| Basic award where the principal reason for dismissal is for carrying out duties as an occupational pension scheme trustee | £4,700 | £11,400 |
| Basic award where the principal reason for dismissal is for carrying out functions or activities as an employee representative or candidate | £4,700 | £11,400 |
| Basic award where the principal reason for dismissal is based on working time grounds | £4,700 | £11,400 |
| Award for employees excluded or expelled from a trade union (EAT cases only) | £7,200 | £76,700 |
| Unjustifiable discipline by a trade union | N/A | £77,600 |
| Unfair refusal of employment or services of employment agency on union membership grounds | N/A | £65,300 |
| Consultation with union on training | N/A | 2 weeks' pay (up to £760) |
| Breach of right to be accompanied | N/A | 2 weeks' pay (up to £760) |
| Breach of contract cases heard in the employment tribunal | N/A | £25,000 |
| Failure to inform or consult over collective redundancy | N/A | 90 days' actual pay |
| Failure to inform or consult over a TUPE transfer | N/A | 13 weeks' actual pay |
| Failure to give statement of employment particulars | 2 weeks' pay (up to £760) | 4 weeks' pay (up to £1,520) |
| Breach of flexible working regulations | N/A | 8 weeks' pay (up to £3,040) |
