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1 February – Increase in compensation rates

With effect from 1 February 2012 the Employment Rights (Increase of Limits) Order 2011 increases the maximum amount of 'a week's pay' for calculating compensation for unfair dismissal and redundancy pay from £400 to £430.

The Order also increases the maximum compensatory award for unfair dismissal from £68,400 to £72,300.

  • Automatic unfair dismissal - basic award: a minimum basic award of four weeks' pay (£1,600 but £1,720 after 1 February 2012) is made where a dismissal is regarded as automatically unfair under section 98A(i) of the Employment Rights Act 1996 if the basic award is less than this amount. However such an award need not be made where it would result in injustice to the employer.

 

  • Unfair dismissal - minimum basic award: for unfair dismissal for a reason related to the complainant's appointment as a Health and Safety representative, exercise of rights under the Working Time Regulations, activities as a pension scheme trustee, activities as an employee representative in connection with redundancies or a transfer of undertakings is £5,000 (£5,300 after 1 February 2012).

 

  • Union membership: the minimum basic award for dismissal or selection for redundancy on grounds related to union membership or activities is £5,000 (£5,300 after 1 February 2012). The minimum compensation awarded for exclusion or expulsion from a trade union is £7,600 (£8,100 after 1 February 2012). The award for unlawful inducement relating to trade union membership activities, or for unlawful inducement relating to collective bargaining is £3,300 (£3,500 after 1 February 2012).

Breach of contract claims: the maximum award a tribunal can make is £25,000.

In addition, the tribunal may award the following:

  • Refusal of right to be accompanied at a grievance or disciplinary meeting or a meeting to discuss a statutory flexible working request: 2 x a week's pay, so maximum of £800 (£860 after 1 February 2012)
  • Failure to consider a flexible working request: 8 x a week's pay, so maximum of £3,200 (£3,440 after 1 February 2012)
  • Failure to inform/consult on a TUPE transfer: 13 x a week's pay, so maximum of £5,200 (£5,590 after 1 February 2012)
  • Failure to provide written particulars of employment: 4 x a week's pay, so maximum of £1,600 (£1,720 after 1 February 2012)

The guaranteed daily rate for employees who are laid off work under the Employment Rights Act 1996 is currently set at £22.20. This will increase to £23.50 from 1 February 2012.