Maximum compensatory award limit for unfair dismissal claims drops from £66,200 to £65,300

The compensatory award for unfair dismissal claims has been reduced with effect from 1 February 2010 to reflect the recent fall in RPI. The maximum award, which had been linked to the RPI for September of the preceding year, had previously increased in line with this measure each year since the advent of the Employment Relations Act 1999.
The fall in RPI has also lead to a reduction in the limit on the amount of a guarantee payment payable to an employee in respect of any day (down 30p to £21.20 and a reduction in the minimum compensation where an individual is excluded or expelled from a union in contravention of s.172 of the 1992 Act, and not admitted or re-admitted following a tribunal declaration (down £100 to £7200).
The event that gives rise to the award or payment would have to occur on or after 1 February 2010 for the new rates to apply.
Other pay awards have not been affected by the RPI decrease, including the maximum weekly payment used to calculate statutory redundancy pay (£380) and the basic and additional awards for unfair dismissal. The weekly rate of Statutory Sick Pay (SSP) has been £79.15 from 6 April 2009. For more information on employment issues, including the BWF Employee Handbook, disciplinary guides and frequently asked questions, visit the dedicated employment area of our site.