Labour Research (January 2005)

Law Matters

Statutory limits to rise

The statutory limits on awards for dismissal or redundancy are to change from 1 February 2005.

The maximum amount of weekly pay used to calculate the basic award for unfair dismissal or a redundancy payment has been increased to £280 (formerly £270).

In cases of unfair dismissal, the maximum compensatory award will rise to £56,800 (formerly £55,000).

And successful claimants will be able to receive a basic award of up to £3,800 (formerly £3,600) if they are dismissed for the following reasons:

* union membership or activities;

* carrying out the functions of a representative on a health and safety committee, for the purposes of the Working Time Regulations 1998 or the TUPE regulations, or in collective redundancy consultations; or

* carrying out functions as a trustee of an occupational pension scheme.

The daily limit on the amount of guarantee payment will rise to £18.40 (formerly £17.80).


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