Compensation payments increase

Employees taking unfair dismissal claims will have the right to higher levels of compensation as a result of recent increases in employment protection payments.

The new rates were effective from 1 February 2002 and mean that someone who is unfairly dismissed could get compensation of up to £52,600.

Statutory redundancy pay has gone up from £240 to £250 a week. The maximum amount of statutory redundancy pay is now £7,500.

There was no change to the maximum award in breach of contract cases which remains at £25,000. A full list of the changes is given below (previous year in brackets):

Employment protection payments

Maximum compensatory award for unfair dismissal £52,600 (£51,700)

Redundancy "week's pay" £250 (£240)

Minimum where individual excluded/expelled from a union £5,600 (£5,500)

Minimum basic award where unfair dismissal for union reasons £3,400 (£3,300)

Guarantee pay (where employees are laid off) (daily rate) £17.00 (£16.70)

Maximum award in breach of contract cases taken through tribunals £25,000 (£25,000)