The annual review of the maximum compensation that can be awarded in unfair dismissal and other cases increases the awards to a new maximum of £85,200 from 1 February.

The new maximum for a ‘week’s pay’ (used to calculate the basic award in unfair dismissal cases, statutory redundancy pay and a number of other awards) increases from £400 to £430.

This means the maximum basic award for unfair dismissal increases from £12,000 to £12,900. The compensatory award also increases, from £68,400 to £72,300. The new rules also set out how to work out the ‘appropriate date’ for determining when the new rates apply in each case.

Recommendation

Download the new rules from the government’s legislation website.

For more information please contact Ian Dawson at Shulmans on 0113 297 7735 or at idawson@shulmans.co.uk or Lee Stephens at Shulmans on 0113 297 8938 or at lstephens@shulmans.co.uk