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.