Increase in employment tribunal award limits and statutory payments
January 2, 2012
From 1 February 2012 there will be an increase in the amounts payable on certain employment tribunal awards and other amounts payable under employment legislation. These increases only apply where the effective date of termination of employment occurs on or after 1 February 2012. Details of the most important changes are set out below:
- The maximum compensatory award for unfair dismissal is to increase to £72,300 (it is currently £68,400)
- The statutory limit on a week’s pay (used to calculate statutory redundancy pay and the basic award for unfair dismissal) is to increase to £430 (it is currently £400)
- The minimum basic award is to increase to £5,300 (it is currently £5,000) where the dismissal was unfair due to being based on one of the following reasons: trade union membership or activities, health and safety activities, occupational pension scheme trustee duties, employee representative functions and working time grounds.
From the week beginning 9 April 2012 the following maximum weekly rates will apply:
- Statutory maternity pay – £135.45
- Statutory paternity pay – £135.45
- Additional statutory paternity pay – £135.45
- Statutory adoption pay – £135.45
- Statutory sick pay – £85.85
For further information or to discuss the issues raised, please contact David Widdowson or Stephen Wright on +44 20 3051 5711.
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