The UK Government has announced the 2012 increases in compensation levels.  The new rates will apply where the event giving rise to compensation or payment occurs on or after 1 February 2012.  Where the dismissal or relevant event occurs before 1 February 2012 the old limits will still apply, irrespective of the date on which compensation is awarded:

  • The limit on a week's pay (for calculating various payments such as statutory redundancy pay and the basic award for unfair dismissal) will increase from £400 to £430. The maximum basic award for unfair dismissal and statutory redundancy pay will therefore be £12,900.
  • The maximum compensatory award for unfair dismissal will increase from £68,400 to £72,300. This means that the maximum overall unfair dismissal award (i.e. basic plus compensatory awards) will increase from £80,400 to £85,200.