On 1 February 2013, the maximum compensatory award for unfair dismissal will rise from £72,300 to £74,200 and the maximum amount of a statutory week’s pay, used to calculate statutory redundancy pay (among other things), will rise from £430 to £450.
The figures reflect an RPI increase of 2.6% in the year to September 2012.
Summary of changes:
- Maximum compensatory award for unfair dismissal: increasing from £72,300 to £74,200
- Maximum limit on a week’s pay: increasing from £430 to £450
- Minimum basic award for certain unfair dismissals (dismissals for reasons of trade union membership or activities, health and safety duties, pension scheme trustee duties or acting as an employee representative): increasing from £5,300 to £5,500
- Maximum basic award or statutory redundancy payment: increasing from £12,900 to £13,500
These new rates will apply in instances where the effective date of termination falls on or after 1 February 2013.
For any employment enquiries please contact the Steeles Law employment team on firstname.lastname@example.org or 01603 598000.