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.