Tribunal Awards

The maximum compensatory award for unfair dismissal is set to fall from £66,200 to £65,300. This will come into force when the event giving rise to the entitlement occurs on or after 1 February 2010.

The amount of a “week’s pay” which is used to calculate a number of awards including statutory redundancy pay and the basic award for unfair dismissal will remain the same at £380 per week and will next be reviewed in February 2011.

Action Steps

No immediate changes need to be implemented by employers. Although it is good news that the compensatory award has decreased, this is a reminder to employers to follow fair redundancy or other dismissal procedures to avoid any potential litigation.