Increase in compensation limits in Employment Tribunals
The Employment Rights (Increase in Limits) Order SI 2002 No.109p
Employment tribunal award limits have been up rated in line with the rise in the Retail Price Index from September 2000-01.
The maximum amount of 'a week's pay' for the purpose of calculating basic or additional award of compensation for unfair dismissal and redundancy has increased from £240 to £250. This new limit also applies to cases under the insolvency provisions in calculating debts in respect of any one week.
The limit on the amount of compensatory award for unfair dismissal has gone up from £51,700 to £52,600 but it is depressing to note how rarely tribunals actually award the maximum in unfair dismissal cases.
For the automatically unfair categories of trade union membership or activity dismissals, dismissal for health & safety reasons, working time dismissals, occupational pension scheme trustee dismissals and employee representatives (for TUPE and redundancy purposes where there is no recognised trade union) the minimum basic award has increased from £3,300 to £3,400.
The new limits will apply to cases where the effective date of termination is on or after 1 February 2002, and in cases other than dismissal where the event giving rise to the entitlement takes place on or after 1 February.