New tribunal award limits come into force

The maximum awards that can be made by employment tribunals rose on 1st February in line with the increase in the retail price index.

The limit on the amount of compensatory award for unfair dismissal increased from £63,000 to £66,200. The maximum amount of a nominal week’s pay – the amount used for calculating various awards including redundancy payments – increased from £330 to £350. The limit on the amount of guaranteed payment to an employee in respect of any particular day rose from £20.40 to £21.50.

The increases are made under the Employment Rights (Increase of Limits) Order 2008 and are in line with the rise in the Retail Price Index between September 2007 and September 2008.