Labour Research (March 2008)

Law Matters

Revised compensation limits

With effect from 1 February, the Employment Rights (Increase of Limits) Order 2007 has increased the limits on the compensation that can be awarded in employment tribunal claims. These increases are set out in the table below.

Old limit New limit
Unlawful inducement relating to trade union membership or activities, or collective bargaining £2,700 £2,900
Minimum basic award for dismissal on grounds of trade union membership or activities, health and safety, working time, or acting as a pension scheme trustee/employee representative £4,200 £4,400
Minimum compensation for unlawful expulsion from a union £6,600 £6,900
Guarantee payment (per day) £19.60 £20.40
Maximum compensatory award for unfair dismissal £60,600 £63,000
Maximum amount of “a week’s pay” for the purpose of redundancy payments and awards including the basic or additional award of compensation for unfair dismissal £310 £330


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