31 January 2005

Employment Tribunal compensation levels increase from 1st February

The annual increase on capped compensation levels in Employment Tribunal claims came into effect on Tuesday. This also affects the level of statutory redundancy pay. The new levels are: Statutory Redundancy £280 per full week worked (max £8,400 for a long serving employee) Maximum compensation in Unfair Dismissal cases increased from £55,000 to £56,000. Remember that there is also a Basic Award on top of this, which extends the absolute maximum to £64,400, depending on how long the employee worked for you. And never forget that this cap does not apply to discrimination claims. Thus, for instance, if you are found to have unfairly dismissed an employee for a discriminatory reason (sex, race, disability, sexual orientation, religion), the sky's the limit!