Employment Rights - Statutory limits

The limit on the amount of the compensatory award for unfair dismissal is set to decrease from 1 February 2010.

The current maximum of £66,200 is to reduce to £65,300, due to the decrease in the retail prices index measure of inflation. This new limit applies where the event giving rise to the entitlement to the payment arose on or after 1 February 2010. The maximum amount of a week's pay for the purpose of calculating the basic or additional award of compensation for unfair dismissal or redundancy payment has not been amended from the current amount of £380. This rate has been in force since 1 October 2009. The Business Link website includes a useful calculator of statutory redundancy entitlement.