The annual increases in compensation limits for Employment Tribunal awards have came into effect today under the Employment Rights (Revision of Limits) Order 2010.
The maximum compensatory award for unfair dismissal rises from £65,300 to £68,400 and the limit on a week's pay for the purposes of calculating a statutory redundancy payment and the basic and additional awards for unfair dismissal increases from £380 to £400.
The maximum basic award or statutory redundancy payment will now rise from £11,400 to £12,000. The increase in the rates means that the highest possible award now available in ordinary unfair dismissal claims is £80,400. These changes will apply to dismissals which take effect today or after today.
The Minister of State for the Department for Work and Pensions has also recently announced the proposed rates for statutory sick pay and statutory maternity, paternity and adoption pay for this year.
The prescribed rate for statutory maternity, paternity and adoption pay and maternity allowance will increase from £124.88 to £128.73 per week. These changes will come into effect on 3 April 2011.
The standard rate of statutory sick pay increases from £79.15 to £81.60 per week from 6 April 2011. For the tax year 2011/2012, the lower earnings threshold has increased to £102 from £97 for these purposes.