New Compensation Limits in Force
What's Happened?01 Feb 05
As is now traditional every 1st February, the annual increase in employment law compensation limits has come into force. The most important ones for employers to be aware of are:
| New Limit Cap on "a week's pay" for purposes of redundancy payments and unfair dismissal compensation | £280 |
| Max basic award for unfair dismissal | £8,400 |
| Max compensatory award for unfair dismissal | £56,800 |
| Daily limit on guarantee payment (in case of lay-off) | £18.40 |
What Do I Need To Do?
Remember that these new limits apply if you are calculating redundancy payments or guarantee payments.
Remember that these are only statutory limits and if your contracts provide for higher payments, you must honour your contractual terms.
