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Accessible legal tips, know-how and news for anyone with a complaint or legal issue from Stephen Gold, author of The Return of Breaking Law, the book

Monday 25 February 2019

Higher Compensation Limits For Workers

The compensation that an employment tribunal can award you if you have been unfairly thrown out of your job or the been the victim of a multitude of other sins which are open to employers to commit, is reviewed annually in line with the retail prices index. The latest review has been converted into new legislation - the Employment Rights (Increase of Limits) Order 2019 SI 2019/324 - which will raise the compensation limits by 3.3%. So hold on boss, wait a few more weeks before transgressing, will you? Please!

The new limits will only apply when the dismissal or whatever the employer has wrongfully done occurs on a defined date on or after 6 April 2019. That date will vary according to the nature of the sin. For an unfair dismissal or redundancy where notice is given, for example, the new limits will apply if the notice to terminate expires on or after 6 April 2019. If no notice has been given, the new limits will apply if the date termination is to take effect occurs on or after 6 April 2019.

What are the new limits? For the amount of pay taken into account to calculate a redundancy payment or the basic and additional unfair dismissal awards - it's what is know as 'one week's pay' - the figure will be a maximum of £525 instead of £508. For the unfair dismissal compensatory award , a fat £86,444 maximum will be collectible instead of £83,682.