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2 August 2003

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Increase of employment tribunal compensation limits


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An employment partner at Peterborough law firm Hegarty & Co is warning employers to keep up to date with their employee legal requirements as the Employment Tribunal compensation limits are set to rise next February.

Employment partner, Tim Thompson, explained, "Employment Tribunals resolve disputes between employers and employees over a variety of employment rights. They act on disputes regarding unfair dismissal, redundancy payments, sex, race and disability discrimination together with certain issues relating to wages and terms and conditions of employment."

"Annually the Employment Rights Order increases the limit of compensation for unfair dismissal that can be awarded at Employment Tribunals. The amount for unfair dismissal will increase to 61,300 from 1st February next year."

Tim has considerable experience at representing clients at Employment Tribunals, and advising employees and employers on their legal position.

He continued, "Some people may be unaware that there are set limits on the amount of compensation that can be awarded at Employment Tribunals for certain types of cases. Employment law is complicated and changes frequently but HR professionals need to ensure they keep up to date, if their company loses at a Tribunal they may be forced to pay a large amount of compensation to the employee. The increase in the compensation limits will permit Tribunals to award higher amounts of compensation next year for unfair dismissal."

The other increases that will come into effect are:

  • currently Tribunals can award a maximum of 250 per week for statutory purposes, such as unfair dismissal, this will increase to 260 per week next year.

  • the minimum basic award for certain automatically unfair dismissals, including trade union membership, health and safety and public interest disclosure, will increase from 3,400 to 3,500.

  • the limit on the amount of guarantee payment payable to an employee in respect of any day will rise from 17.00 to 17.30.

December 2002

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