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Compensation Limits
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| The following compensation limits will apply from 1 February 2012 |
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| A weeks pay for calculating tribunal basic awards and redundancy pay |
£430 per week |
| Maximum statutory redundancy payment and tribunal basic award |
£12,900 |
| Maximum tribunal compensatory award for unfair dismissal |
£72,300 |
| Guarantee pay – limit on a day’s pay |
£23.50 |
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| The following rates increased from 1 April 2011 |
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| The lower earnings limit |
£102 |
| Standard rate for statutory maternity, paternity and adoption pay (per week) |
£128.73 |
| Statutory sick pay (per week) |
£81.60 |
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Statuory Sick Pay (SSP)
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- Payable for up to 28 weeks in a 3 year period
- Employee must earn a minimum of £102 per week currently (see Class 1 Lower Limit).
- The current rate of SSP is £81.60 per week (6 April 2011). The daily rate of SSP is worked out by dividing the weekly amount by the number of qualifying days in the week.
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Statutory Maternity Pay (SMP)
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| For employees who earn more than the Lower Earnings Limit |
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| Length of Service |
Maternity Leave |
SMP |
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| Less than 26 weeks’ service at the beginning of the 15th week before the Expected Week of Confinement (EWC) |
Up to 52 weeks |
No entitlement |
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| 26 weeks’ service or more at the beginning of the 15th week before the EWC |
Up to 52 weeks. |
6 weeks at 90% of earnings and up to 33 weeks at £128.73 from 5 April 2010 per week or 90% of earnings (whichever is less) |
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Guarantee Payments ("Lay-Off Pay")
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The guaranteed daily rate for employees, who are laid off work under the Employment Rights Act 1996, from 1 February 2012 is £23.50 per day.
Employees are entitled to guarantee payments for up to five workless days in a three month period.
Where the normal working week is less than five days, the number of days entitled guarantee pay is reduced proportionately.
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Minimum Periods of Statutory Notice
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| Length of continuous service |
Period of notice |
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| Less than one month |
None |
| 1 month to 2 years |
One week |
| 2 to 12 years |
One week per year of service |
| 12 or more years |
12 weeks |
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The notice period may be dispensed with and no compensation offered in lieu if the employee commits an offence so serious that it is incompatible with continuing employment. This is known as “summary dismissal”.
If an employer dismisses an employee, other than as a summary dismissal, the employer is obliged to pay the employee for the notice period. If this is allowed for in accordance with the contract of employment, the payment is subject to tax and National Insurance.
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