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Limits On Employment Tribunal Awards Increase From 1st February 2013

Employment Tribunal compensation limits will increase on 1 February 2013 under the Employment Rights (Increase of Limits) Order 2012 (“the Order”). The maximum compensatory award for unfair dismissal will rise from £72,300 to £74,200 and the maximum amount of a week’s pay, used to calculate statutory redundancy pay, will rise from £430 to £450. In addition, the minimum basic award for certain unfair dismissals (including dismissals for reasons of trade union membership or activities, Health and Safety duties, pension scheme trustee duties or acting as an employee representative) will rise from £5,300 to £5,500. In cases involving dismissal, the new figures will apply where the effective date of termination falls on or after 1 February 2013. It should be noted that Article 4 of the Order preserves the limits in force under the Employment Rights (Increase of Limits) Order 2011 in relation to cases where the effective date of termination falls before 1 February 2013.