The Government has announced the new compensation limits to be imposed by employment tribunals with effect from 1 February 2013. The following changes are most likely to be of interest:
- the limit on the amount of a week's pay for the purposes of calculating statutory redundancy payments and the basic award in claims of unfair dismissal will increase from £430 to £450.
- the maximum compensatory award for unfair dismissal will increase from £72,300 to £74,200.
These new rates will apply where the event giving rise to compensation or payment occurs on or after 1 February 2013 (i.e. they will apply to all dismissal where the effective date of termination is on or after 1 February 2013). In cases where dismissal or the other relevant event is before 1 February 2013, then the current limits will apply, irrespective of the date of the tribunal hearing or the date that any compensation is awarded by a tribunal.