The Employment Rights (Increase of Limits) Order 2008, which details the annual inflation-linked increase in limits on the amounts which can be awarded by employment tribunals, was made on 24 November 2008 and applies where the appropriate date falls on or after 1 February 2009.
The main increases in compensation limits are:
- the maximum compensatory award for unfair dismissal has increased from £63,000 to £66,200;
- the maximum amount for a week’s pay (for calculating various tribunal awards including the basic award or redundancy payment) has increased from £330 to £350; and
- the limit on the amount of guarantee payment payable to an employee in respect of any day has increased from £20.40 to £21.50.
There is no statutory cap on the amount a tribunal can award in discrimination cases.
The full list of the increases can be found in the Schedule to the Order.