Employment Alert No. 80- Increase in Employment Protection Awards
December 5, 2003
The compensation limits on tribunal awards will increase from 1 February 2004.
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Statutory Redundancy Pay |
The current maximum amount permitted for calculation of a week's pay will rise from £260 to £270. The maximum statutory redundancy payment will rise from £7,800 to £8,100.
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Basic Award |
The current maximum amount for a week's pay will rise from £260 to £270.
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Maximum Compensatory Award |
The maximum Compensatory Award a Tribunal can award for unfair dismissal will rise from £53,500 to £55,000.
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What does this mean for employers? |
The changes will take effect on 1 February 2004 and be applicable to redundancies and dismissals on or after this date.
Employers’ exposure in the event of an unfair dismissal claim will rise and should be factored into decision making about litigation or settlement strategy.
