2011 Brings increase in employment tribunal compensation limits

The annual amendment of compensation limits for Employment Tribunal awards came into effect on 1 February 2011.

The awards are amended each year in line with the Retail Price Index and last year was the first occasion when the compensatory limit for Unfair Dismissal claims actually dropped.

This year however, the compensation limits have reverted to form and there has been an increase across the board. The most significant changes are:

1. The limit on a week’s pay for the purposes of calculating statutory redundancy payments and basic awards for dismissal claims has increased from £380 to £400.
2. The maximum compensatory award for unfair dismissal rises from £65,300 to £68,400.
3. The maximum basic award or statutory redundancy payment will now rise from £11,400 to £12,000. This increase means that the maximum award for ordinary unfair dismissal claims is £80,400. These changes will apply to dismissals that occurred on or after 1 February 2011.

You can review the current employment tribunal compensation limits here.