New compensation limits
Labour & European Law Review Weekly Issue 413 01 April 2015
A number of new compensation limits come into force on 6 April 2015. These apply when the relevant event takes place on or after that date. So, for someone unfairly dismissed the new rates only apply to dismissals with an effective date of termination on or after 6 April 2015.
|Limits on guarantee payment (per day)||£25||£26|
|Limit on a week's pay for calculating e.g. redundancy payment, basic or additional award of compensation for unfair dismissal||£464||£475|
|Fixed award for unlawful inducement relating to trade union membership or activities or collective bargaining||£3,715||£3,800|
|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||£5,676||£5,807|
|Maximum redundancy payment and basic award for unfair dismissal (30 weeks’ pay)||£13,920||£14,250|
|Maximum compensatory award for unfair dismissal||£76,574*||£78,335*|
|Minimum amount of compensation where individual excluded or expelled from union and not admitted or re-admitted by date of tribunal application.||£8,669||£8,868|
An additional cap was introduced by the Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013 SI 2013/1949, which provides that, for those dismissed after 28 July 2013, the limit is the lower of either £74,200 or 52 weeks pay.
* There is no limit when the employee is dismissed unfairly or selected for redundancy for reasons connected with health and safety matters (such as performing their duties as a health and safety rep or bringing concerns about health and safety issues to their employer’s attention), or public interest disclosure (whistleblowing). Nor is there a limit to compensation for dismissals in breach of discrimination law.
Iain Birrell, from Thompsons Solicitors, commented: “It’s important to know what the maximum and minimum amounts of compensation are for issues of employment law as well as their caveats and application. We would always want to see higher maximum and minimum levels of compensation in cases such as these.
"To that end, it is disappointing to see that the limit for breach of contract cases heard at Employment Tribunals has not been increased from £25,000. This limit has been in place for over a decade now and has only deteriorated in value over that time."