The Government has recently published details of proposed changes to the limits on compensation that can be awarded by employment tribunals.

Making a wrong decision with regard to employment law can be very costly for employers, and these new figures serve to highlight this important fact.

The increases are in the main related to unfair dismissal cases and the guidelines that tribunals should use when it comes to calculating how much an unfairly dismissed worker should receive in recompense for their treatment and for the situation they find themselves in.

The impending changes come as a result of Section 34 of the Employment Relations Act 1999, which stipulates that if the Retail Price Index (RPI) for September in any given year is higher (or lower) than the RPI of the previous September, then the Secretary of State must change compensation limits to mirror the difference in the RPI. This is intended to ensure that the compensation levels accurately reflect the current economic situation.

Some of the key increases include:

• The Statutory Daily Guarantee Payment is to increase by £1.10 to £21.50.
• The amount used to signify “a week’s pay” will be raised by £20.00 to £350.00.
• The compensatory award for unfair dismissal will go up £3,200 to £66,200.

If you are an employer who wants to avoid costly litigation and penalty payments, obtaining qualified legal advice on employment law-related matters is essential. As specialist employment law solicitors, Ashby Cohen have both the experience and the expertise to ensure that your company remains fully in compliance with current employment law legislation. Contact us today for a free initial telephone consultation.

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