NEWS IN BRIEF

New Compensation Limits

A number of new compensation limits come into force on 1 February 2009. These apply when the relevant event takes place on or after 1 February 2009. So, for someone unfairly dismissed the new rates only apply to dismissals with an effective date of termination on or after 1 February 2009.

	Previously	From 01.02.09
Limits on guarantee payment (per day)	£20.40	£21.50
Limit on a week's pay for calculating e.g. redundancy payment, basic or additional award of compensation for unfair dismissal	£330	£350
Fixed award for unlawful inducement relating to trade union membership or activities or collective bargaining	£2,900	£3,100
Minimum basic award for unfair dismissal or selection for redundancy on grounds of trade union, health and safety, occupational pension scheme trustee, employee representative, working time	£4,400	£4,700
Maximum redundancy payment and basic award for unfair dismissal (30 weeks’ pay)	£9,900	£10,500
Maximum compensatory award for unfair dismissal	£63,000*	£66,200*
Maximum award in breach of contract claims (no change)	£25,000	£25,000

* There is no limit where the employee is dismissed unfairly or selected for redundancy for reasons connected with health and safety matters or public interest disclosure ('whistleblowing'). Nor is there a limit to compensation for dismissals found to breach discrimination law.