New compensation limits from 01/02/09

From 1 February 2009 there will be increases on the limits of certain employment tribunal awards and other amounts payable under employment legislation.  These include:-

• The limit on the amount of a week's pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal will increase from £330 to £350;
• Guaranteed pay increases from £20.40 per day to £21.50 per day;
• The maximum compensatory award for unfair dismissal goes up from £63,000 to £66,200; and
• The minimum basic award in cases where the dismissal was unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £4,400 to £4,700.

In the case of unfair dismissal these rates will only apply to dismissal where the effective date of termination falls after 1 February 2009.  Where the dismissal or relevant event occurs before that date the old limits will still apply. 

For further information on these changes please contact Tony McPhillips on
0191 211 7908 or email advice@muckle-llp.com.

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