The UK Government has announced the annual increases in compensation limits. These will take effect from 1 February 2013 and will apply where the dismissal or other event giving rise to compensation or payment occurs on or after 1 February 2013. Where the dismissal or other event occurs before 1 February 2013 the old limits will still apply.
Key points to note are:
- the maximum compensatory award for unfair dismissal will rise from £72,300 to £74,200;
- the maximum amount of a week's pay for unfair dismissal and statutory redundancy payment purposes will rise from £430 to £450; and
- the maximum basic award for unfair dismissal and the maximum statutory redundancy payment will increase from £12,900 to £13,500.
