New compensation limits announced

Compensation limits in employment tribunals claims are to increase next month.

In calculating the basic award for statutory redundancy, unfair dismissal and payments on insolvency, the maximum amount of a week's pay will rise from £280 to £290.

In unfair dismissal claims, the maximum compensatory award will increase from £56,800 to £58,400.

The minimum basic award will rise from £3,800 to £4,000 for dismissals that are unfair for certain reasons such as union membership or activities, health and safety duties, rights in relation to working time, acting as a rep for TUPE purposes and performing functions as trustee of an occupational pension scheme.

For unlawful expulsion or exclusion from a union, the minimum compensation will rise from £6,100 to £6,300.

The limit on the guarantee payment in respect of a day's pay will be £18.90, up from £18.40. And compensation for unlawful inducements relating to union membership/activities or collective bargaining will be £2,600, up from £2,500.

The new limits will apply in cases where the date giving rise to the action falls on or after 1 February 2006.

The Employment Rights (Increase of Limits) Order 2005 SI 2005/3352