Labour Research January 2007

Law Matters

Compensation rates are set to change in February

Compensation rates that can be awarded in employment tribunals are set to increase from next month.

The new limits are set out in the Employment Rights (Increase of Limits) Order 2006, which takes effect for complaints arising on or after 1 February 2007.

The maximum amount of a week's pay for the purposes of calculating statutory redundancy pay, the basic award in cases of unfair dismissal, or outstanding debts payable out of the National Insurance Fund will rise from £290 to £310 a week.

The upper limit on the compensatory award for unfair dismissal will increase to £60,600.

The minimum basic award in certain unfair dismissal cases (including dismissals for health and safety or working time reasons and dismissal or redundancy on grounds of trade union membership or activities) will go up by £200 to £4,200.

Guarantee pay will be increased from £18.90 to £19.60 per day.

The minimum compensation for unlawful expulsion or exclusion from a trade union will rise from £6,300 to £6,600.

And the award for unlawful inducement relating to union membership or activities or collective bargaining will go up from £2,600 to £2,700.