• Norwich

  • Diss

  • London

Share this page

Email a friend

Enter the email address and we'll send a link to this page to that address.

First Name

Last Name

Email:


Share on Social

Or share on social media.

18 December 2012

New compensation limits announced

New limits for compensation awards by employment tribunals have been announced and will take effect from 1 February 2013.

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 employment@steeleslaw.co.uk or 01603 598000.