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01 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

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.