The usual annual Government review of compensation rates has now taken place.
As from 1st February 2011 these changes will be effective
- the limit on the amount of a week's pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal will increase from £380 to £ 400;
- the maximum compensatory award for unfair dismissal rises from £65,300 to £68,400;
- guarantee pay increases from the rate of £21.20 a day to £22.20 a day; and
- the minimum basic award in cases where the dismissal was unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £4,700 to £5,000.
The new rates apply where the event giving rise to compensation or payment occurs on or after 1 February 2011. For example, in the case of unfair dismissal the rates apply to all dismissals where the effective date of termination falls on or after this date. Where the dismissal or relevant event falls before 1 February, the old limits will still apply, irrespective of the date on which compensation is awarded.
There are other changes but those mentioned above are the key ones.
