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02 January 2008

The Employment Rights (Increase of Limits) Order 2007, SI 2007/3570

Each year at around this time the Government announces the latest increase in tribunal limits. These apply to events on or after the 1st February 2008. This increase is a result of a simple exercise in applying inflation to the old figures. The Government’s own explanation states that ‘this Order increases [the limits], in line with the increase in the retail prices index between September 2006 and September 2007 (+3.9%)’.

The two most important increases are that the limit on the amount of compensatory award for unfair dismissal increases from the current £60,600 to £63,000. Secondly, the maximum amount of ‘a week’s pay’ for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal increases from the current £310 to £330. The changes take effect when the effective date of termination of employment is on or after 1st February 2008.

[2020 update: an annual increase has happened every year since and, for example, in 2020 they are £88,519 and £538 per week. That weekly maximum wage is the weekly gross pay of a person earning £27,820 which is about average wages.]

Steen & Co Employment Solicitors will be monitoring the developments in this area of law and will provide information as and when more details are known. For more information please contact us via any of the methods set out on our contact us page.