New Compensation Limits From 1 February 2012

The UK Government has announced the 2012 increases in compensation levels.  The new rates will apply where the event giving rise to compensation or payment occurs on or after 1 February 2012.  Where the dismissal or relevant event occurs before 1 February 2012 the old limits will still apply, irrespective of the date on which compensation is awarded:

• The limit on a week's pay (for calculating various payments such as statutory redundancy pay and the basic award for unfair dismissal) will increase from £400 to £430. The maximum basic award for unfair dismissal and statutory redundancy pay will therefore be £12,900.
• The maximum compensatory award for unfair dismissal will increase from £68,400 to £72,300. This means that the maximum overall unfair dismissal award (i.e. basic plus compensatory awards) will increase from £80,400 to £85,200.