Release date: March 2003

February saw the annual increase in compensation limits for unfair dismissal and redundancy payments. The increased amounts stated in the Employment Rights (Increase of Limits) (No.2) Order 2002 applies where the event giving rise to the entitlement to compensation or other payments occurred on or after 1st February 2003.

Statutory compensation limits for unfair dismissal detail changes in:

• The maximum week’s pay increases from £250 to £260. The basic award depends on the employee’s age, length of service with the employer, and the amount of a week’s pay, up to a maximum of 30 weeks’ pay (£7,800 maximum).
• The minimum award for certain automatic unfair dismissal including those related to trade union membership, health and safety and public interest disclosure increase from £3,400 to £3,500.
• The compensatory award increases from £52,600 to £53,500 and is based on the employment tribunal’s assessment of the employee’s loss of earnings between the dismissal and the tribunal hearing, and the likely future loss of earnings, loss of pension rights etc.

Statutory compensation limits for redundancy payments detail changes in:

• The maximum week’s redundancy pay increases from £250 to £260, with a maximum redundancy payment of 30 weeks’ pay (£7,800 maximum), depending on the employee’s age, length of service with the employer and the amount of a week’s pay.

Chris Wiper heads an experienced commercial team at Close Thornton Solicitors, providing practical and professional advice on a broad range of legal issues. This article is not intended to be an exhaustive statement of the law or a substitute for seeking specific advice. For further information please contact Chris Wiper on 01325 466461 or email chris.wiper@close-thornton.co.uk.

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