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Employment: Reduced compensation limit for unfair dismissal from February 2010

March 2010

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.