As of 1 February 2009 the limits on compensation in the Employment Tribunal are changing. The key changes are as follows:

  • the limit on the amount of a week's pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal will increase from £330 to £350; and
  • the maximum compensatory award for unfair dismissal goes up from £63,000 to £66,200;

Compensation for discrimination remains uncapped.

The new rates apply where the event giving rise to compensation or payment occurs on or after 1 February 2009. For example, the new unfair dismissal rates will apply to all dismissals where the effective date of termination falls on or after 1 February. Where the event complained of occurs before 1 February 2009, the old limits will still apply, regardless of when the compensation is awarded.