February 2010, Healys employment solicitors in London and Brighton review the Annual Compensation Limits for Statutory Employment Claims.
When the Annual Compensation Limits for Statutory Employment Claims are reviewed, it is always timely to remind employers about the risks of getting things wrong and, therefore, the benefits of an informed approach to managing their workforce.
This year will see a slight decrease in the maximum compensatory award for unfair dismissal – somewhat strangely in light of the more recent significant rises in compensation limits and the basic awards.
This decrease is in fact due to the indexation of the compensatory limit and the recent negative RPI (Retail Price Index).
The maximum compensatory award for unfair dismissal will fall from £66,200 to £65,300 and will apply to unfair dismissal claims where the dismissal i.e. the effective date of termination of employment occurs on or after 1 February 2010.
The limit on a "week's pay" which, among other things, is used to calculate statutory redundancy payments, will remain at £380 following the increase on 1 October 2009 from £350.
Consequently the maximum award for those with claims outstanding or in the pipeline is as follows:
- £76,700 (ie £66,200 plus 30 X £350) where dismissal is from 1st February 2009 to 30th September 2009;
- £77,600 (ie £66,200 compensatory award plus 30 X £380 for maximum basic award) where dismissal is from 1st October 2009 to 31st January 2010;
- £76,700 (ie £65,300 compensatory award plus 30 X £380 for maximum basic award from 1st February 2010 (the maximum limit on compensatory award is reduced on 1st February 2010 but there is no change in basic award - see above).
And, as referred to above, this is a salutary reminder of the benefits of seeking clear practical advice on the legal aspects of staff management.
Contact Healys solicitors in London and Brighton for employment law advice
A number of problems and issues can arise in the workplace. We are experienced specialists in advising upon any of your employment difficulties or concerns.
For advice on all aspects of employment law please call Nicholas Evans on 020 7822 4141. He can also be reached by email.
