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Litigation Letter

Increase in Compensation Limits

The Employment Rights (Increase of Limits) Order 1999 which came into force on 1 February increases the limits applying to certain awards of employment tribunals, and other amounts payable under employment legislation where the event giving rise to the entitlement to compensation or other payments occurred on or after 1 February. The minimum amount of basic award of compensation for unfair dismissal is increased to £3,100; compensation for exclusion or expulsion from a union is now £5,300; the limit on the amount of guarantee payment payable to an employee in respect of any day is £16.10; whilst the limit on amount in respect of any one week in respect of a debt which is referable to a period of time and the maximum amount of ‘a week’s pay’ for the purpose of calculating the basic or additional award of compensation for unfair dismissal or redundancy payment are all increased to £230.

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