Employment law: Annual increase in compensation limits from 1 February 2009

The Employment Rights (Increase of Limits) Order 2008 contains the following annual increase in compensation limits to apply from 1 February 2009:

• Increasing the maximum limit of 1 "week's pay" from £330 to £350 (for example, this is used in the calculation of the basic award for unfair dismissal and statutory redundancy payments); and
• Increasing the maximum compensatory award for unfair dismissal from £63,000 to £66,200.

The increases will apply where the event giving rise to the payment occurs on or after 1 February 2009. For example, where calculating a statutory redundancy payments the increased limit on a week's pay should be used where the effective date of termination is on or after 1 February 2009.