Employment Protection – Annual Compensation Limit Increases

The Government has announced that the compensation limits last fixed on 1st October 2009 will be increased from 1st February 2011.

The new maximum compensatory award for unfair dismissal will increase to £68,400 (it is currently £65,300).

There will also be a new maximum for a week's pay which applies to statutory redundancy payments and other awards based on a week's pay from £380 to £400.

This means that the maximum award for unfair dismissal is £80,400 (basic award plus compensation) and the maximum statutory redundancy payment is £12,000.

Jane Laidler

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