Maximum Compensation February 2010

Following the government’s annual review of employment tribunal compensation limits, from 1 February 2010:

• the maximum compensatory award for unfair dismissal will drop from £66,200 to £65,300; and
• one “week’s pay” (for basic award and redundancy pay purposes) remains the same at £380.

This is the first time the maximum award for unfair dismissal has been reduced. The reduction is due to a drop in the Retail Price Index (RPI), which fell for eight consecutive months from March to October 2009.

The maximum award for a week’s pay will not change until February 2011.

Limit on a week’s pay: £380 Maximum: £11,400