THE EMPLOYMENT RIGHTS (INCREASE OF LIMITS) ORDER 2006

The annual increase in the limits (maximum or minimum) that apply to certain awards of employment tribunals have been announced. The key increases are as follows:

• A week’s pay (for basic award, redundancy payments etc.) - £310 (from £290)

• Maximum compensatory award for unfair dismissal - £60,600 (from £58,400)

• Minimum basic award for defined dismissals (trade union, health and safety, etc.) - £4,200 (from £4,000).

The new limits apply where the “appropriate date” falls on or after 1 February 2007. The appropriate date is determined differently depending on the type of claim brought. For example, in unfair dismissal and most redundancy pay claims, this is the effective date of termination. Full details of the various appropriate dates are included in the Order.

benefit pensions should in most cases no longer require objective justification.