2008 Legal Updates

Employment Legislation: Maximum Awards in Unfair Dismissal Cases (SI 2004/2989.)

On 1 February 2005, The Employment Rights (Increase of Limits) Order 2004 ("The Order") came into force. The Order increases the limits on the maximum amounts which employment tribunals can award
in unfair dismissal cases.
The increases are due to take effect where the "appropriate date" (typically the date of dismissal) is on or after 1st February 2005.

Therefore, the absolute maximum possible award on unfair dismissal cases will rise from £63,100 to £65,200. Discrimination cases are not affected as there is no statutory limit to the amount employment tribunals can award in such cases. Below is a table showing the new limits against the old limits of awards.

Relevant statutory provision	Subject of provision	Old Limits	New Limits
Section 156(1) of the 1992 Act	Minimum amount of basic award of compensation where dismissal is unfair by virtue of section 152(1) or 153 of the 1992 Act.	£3,600	£3,800
Section 176(6) of the 1992 Act	Minimum amount of compensation awarded by the Employment Appeal Tribunal where individual excluded or expelled from union in contravention of section 174 of the 1992 Act.	£5,900	£6,100
Section 31(1) of the 1996 Act	Limit on amount of guarantee payment payable to an employee in respect of any day.	£17.80	£18.40
Section 120(1) of the 1996 Act	Minimum amount of basic award of compensation where dismissal is unfair by virtue of section 100(1)(a) or (b), 101A(d), 102(1) or 103 of the 1996 Act.	£3,600	£3,800
Section 124(1) of the 1996 Act	Limit on amount of compensatory award for unfair dismissal.	£55,000	£56,800
Paragraphs (a) and (b) of section 186(1) of the 1996 Act	Limits on amount in respect of any one week payable to an employee in respect of debt to which Part XII of the 1996 Act applies and which is referable to a period of time.	£270	£280

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© RT COOPERS, 2005. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.