Changes in Compensation Limits - Expert Comments

Gillian Cumming
1st Feb 2010

The Employment Rights (Revision of Limits) Order 2009 applies from today, 1 February 2010.

UK Money

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)
Share this with