New Compensation Limits for Unfair Dismissal Claims

New Compensation Limits for Unfair Dismissal Claims

The Ministry of Justice announced earlier this year that there was to be an increase in the limits on compensation for unfair dismissal claims.
The key changes are contained in the Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013 and are as follows:
The maximum compensatory award for unfair dismissal claims increases from £72300 to £74200 or 52 week’s pay.
The increased limit to the compensatory award is likely to come into force July 2013 and the legislation has now been laid before Parliament.
Furthermore from 1 February 2013 the maximum amount of a week’s pay for the purpose of calculating the basic award for unfair dismissal and statutory redundancy payments increased from £430 to £450. This change means that if you were dismissed on 31 January 2013 then you would be entitled to the lower “Basic Award” of £430 however if you were dismissed on or after 1 February 2013 then you would be entitled to the increased basic award of £450.
If you feel that you have been unfairly dismissed do not hesitate to contact us for specialist advice. We can talk you through the options available and advise you on any likely award.
Jennifer Fagin
Trainee Solicitor

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