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Employment: Reduced compensation limit for unfair dismissal from February 2010

31 January 2012 |

The Employment Rights (Revisions of Limits) Order 2009 sets out a new, reduced, upper limit on awards for unfair dismissal, effective from 1 February 2010. 

The change has been made to take account of the decrease in the retail prices index over the year to September 2009, resulting in the reduction of the maximum compensation award for unfair dismissal from £66,200 to £65,300.

The new reduced limit will be applicable in dismissal cases where the effective date of termination is on or after 1 February 2010.

The reduction does not, however, affect the maximum limit on a week’s pay which will remain set at £380 and which will not be renewed again until February 2011.

Statutory payments increase

From April 2010, the standard rate for Statutory Maternity, Statutory Paternity and Statutory Adoption Pay will increase to £124.88 per week, from the current rate of £123.06.  The minimum weekly earnings required to qualify for these payments will increase from £95 to £97.

Resources

The Employment Rights (Revision of Limits) Order 2009 (SI 2009/3274)

Explanatory memorandum

For further information or to discuss the issues raised, please contact Colina Greenway (colina.greenway@abbisscadres.com) on +44 (0) 203 051 5711.

Disclaimer

Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

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To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this article (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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