tribunal award levels increased

The increases to the levels at which tribunal awards are paid from this month have been announced by the 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 — increased from £430 to £450.

By extension, this means that the maximum amount of statutory redundancy pay that an employee could receive increased from £12,900 to £13,500 (the calculation is 1.5 weeks’ pay at £450 x 20 years).

In automatically unfair dismissals, the minimum basic award that tribunals must award increased from £5,300 to £5,500.

Meanwhile, the maximum compensatory award, which covers loss of earnings, increased from £72,300 to £74,200. 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, increased to £3,600from £3,500.

Finally, the guarantee payment, due under section 31(1) of the 1996 Employment Rights Act when someone is laid-off, increased from £23.50 a day to £24.20.

www.legislation.gov.uk/uksi/2012/3007/pdfs/uksi_20123007_en.pdf