Employment Rights - Statutory Limits

The limit on the amount of the compensatory award for unfair dismissal is set to increase from 1 February 2011.

The current maximum of £65,300 is to increase to £68,400 due to inflation. This new limit applies where the event giving rise to the entitlement to the payment arises on or after 1 February 2011. 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 payments will be increased to £400. This increase on the previous limit of £380 applies from 1 February 2011. The Business Link website includes a useful calculator of statutory redundancy entitlement.