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2013 New Employment Tribunal Compensation limits

Posted on 18th January 2013
New legislation

New compensation limits take effect from 1 February 2013.

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Simon Quantrill Simon
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From 1 February 2013 the limit on the amount of the compensatory award for unfair dismissal is increased from £72,300 to £74,200 (up by £1,900).

Also a week's pay will be increased from £430 to £450. This figure is used for calculating a statutory redundancy payment and the Basic Award of a tribunal claim.
Also in February a new regulation comes into effect that rounds up increases to statutory redundancy payments and tribunal award limits to the nearest £1. This change affects the value of a week's pay for the purpose of calculating statutory redundancy payments and the Basic Award for unfair dismissal.
(Readers should note that the draft Enterprise and Regulatory Reform Bill contains a power for the Secretary of State to make an order to vary the compensation cap to a specified amount, or a specified number (not less than 52) multiplied by the employee's weekly pay, or the lower of those amounts. The government is currently consulting on whether to reduce the existing cap below £72,300 and replace it to not less than the median annual earnings which is currently £25,882. More details will be included in a later edition of hrlegalnews).

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