Change in annual compensation limits for redundancy and unfair dismissal awards
We are at that time of year when increases in tribunal awards and calculations are due to be applied and this year is no different from any other. The amount an individual can receive if made redundant or unfairly dismissed will increase from 1st February 2012 as follows:
The cap on ‘a week’s pay’ used in calculating redundancy payments or the basic award in an unfair dismissal claim will increase from £400 to £430.
The maximum compensatory award that an individual can receive if unfairly dismissed will increase from £68,400 to £72,300.
Employers should be aware that if an employee has been given notice in January but the notice expires in February, it is the new increased figures that will apply.
Finally there is also an increase in the minimum basic award which applies in certain specific circumstances, such as deemed automatic dismissal for a trade union related reason, from £5000 to £5,300.
Adrian, a highly experienced lawyer, founded Lawspeed in 1997. He is responsible for developing our extensive portfolio of products and services, including the widely used Lawspeed contract templates. Adrian is an expert on “recruitment law” and specialises in contracts, regulatory compliance, employment status and dispute handling. He is chair of the trade body the Association of Recruitment Consultancies, the only lawyer lead recruitment trade body in the UK. Adrian and his co-director Ravi devised Standards in Recruitment as a vehicle for helping drive up standards and compliance in the industry.
Adrian is our lead in discussions with the government over regulatory evolution. Apart from assisting with client support, Adrian’s primary role is research and development into methods of business delivery, our latest service Proterms being his most recent project. Adrian heads our IR35 lawyers team.