News and Events

New Compensation Limits For Unfair Dismissal

The Department for Business Innovation and Skills has set the new compensation limits for compensation for unfair dismissal. The maximum award will increase from £68,400 to £72,300. In addition, a week's pay for the purposes of calculating redundancy pay will also increase to £430 (currently £400)

The above applies when the effective date of termination is on or after 1 February 2012.

2012 will see a large number of changes to employment legislation, including the doubling of the qualifying period to two years before employees have rights to claim unfair dismissal.

There are also proposals to change the Employment Tribunal system by introducing fees to be payable by claimants on submitting a claim and further costs if a claim is listed for hearing. In addition, the government is also considering the introduction of penalties to be paid by employers where they are found to be in breach of employment rights - these penalties would be payable to the Exchequer.

The Government also wants to allow employers the freedom to have "frank discussions" with employees by way of Protected Conversations and is looking into an option of compensated no-fault dismissals for smaller businesses. As you can imagine, these suggestions have attracted a mixed response from both sides!

For frequent updates, follow us on Twitter @BattensSol and our website. For a chat in confidence about any employment matter, contact Dawn Gallie on 01935 846233.

Created: 22 December 2011