For the fi rst time ever the annual review of compensation limits has resulted in a reduction to the maximum compensatory award limit. The reduction refl ects the decrease of 1.4% in the Retail Prices Index from September 2008 to September 2009. Under the Employment Rights (Revision of Limits) Order:

  • the maximum compensatory award for unfair dismissals drops from £66,200 to £65,300. A week’s pay for the purposes of calculating the basic award and redundancy payment will remain at £380
  • the minimum amount of compensation where an individual is unlawfully excluded or expelled from a union and not admitted or re-admitted by the date of a tribunal application falls from £7,300 to £7,200

The revisions made by the Order take effect when the event giving rise to the entitlement to compensation or other payment occurs on or after 1 February 2010.