New limits to tribunal awards this month

The increases to the levels at which tribunals awards are paid from this month have been announced by the coalition government.

From 1 February, under the Employment Rights (Increase of Limits) Order 2011, the maximum amount of “a week’s pay” — a concept used in calculating the value of statutory redundancy payment as well as the basic award in tribunal claims — increases from £400 to £430. By extension, this means that the maximum amount of statutory redundancy pay that an employee could receive increases from £12,000 to £12,900 (the calculation is 1.5 week’s pay at £430 x 20 years).

In automatically unfair dismissals, the minimum basic award that tribunals must award increases from £5,000 to £5,300. Meanwhile, the maximum compensatory award, which covers loss of earnings, increases from £68,400 to £72,300.

The amount awarded for an unlawful inducement relating to trade union membership or activities, or for an unlawful inducement relating to collective bargaining, which are prohibited under section 145E(3) of the Trade Union and Labour Relations Consolidation Act 1992, increases to £3,500 from £3,300.

Finally, the guarantee payment, due under section 31(1) of the 1996 Employment Rights Act when someone is laid-off, increases from £22.20 a day to £23.50.