The main increases in compensation limits are:
· the maximum compensatory award for unfair dismissal has increased from £58,400 to £60,600;
· the maximum amount for a week's pay (for calculating basic award or redundancy payment) has increased from £290 to £310; and
· the limit on the amount of guarantee payment payable to an employee in respect of any day has increased from £18.90 to £19.60.
As there is no statutory cap on the amount a tribunal can award in, for example, discrimination cases, the Order does not cover them.
The Employment Rights (Increase of Limits) Order 2006 includes a full list of the increases and can be found here.
Employers will be interested to note that this annual uplift may not always be the only change in the limits. The Work and Families Act contains a clause giving the Secretary of State the power to make a one-off increase to the maximum weekly amount payable as compensation in cases of unfair dismissal, redundancy and insolvency.
