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Revisions made to Unfair Dismissal Compensation

For the first time ever the annual review of compensation limits has resulted in a reduction to the maximum compensatory award limit, in line with the decrease in the retail prices index.

The maximum compensatory award for unfair dismissals drops from £66,200 to £65,300, whilst a weeks pay for the purposes of calculating the basic award and redundancy payment will remain at £380, following the one-off increase in October 2009, and this will not change until February 2011.

In addition to this, the minimum amount of compensation where an individual is unlawfully excluded or expelled from a union and not admitted or re-admitted by the date of a tribunal application falls from £7,300 to £7,200.

The revisions made by the Order take effect when the event giving rise to the entitlement to compensation or other payment, occurs on or after 1 February 2010.