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Annual increase in tribunal awards
01 April 2008
The Employment Rights (increase of Limits) Order 2007, which details the annual inflation-linked increase in limits on the amounts which can be awarded by employment tribunals, was made on 18 December 2007 and applies where the appropriate date falls on or after 1 February 2008.
The main increases in compensation limits are:
• the maximum compensatory award for unfair dismissal has increased from £60,600 to £63,000;
• the maximum amount for a week's pay (for calculating basic award or redundancy payment) has increased from £310 to £330; and
• the limit on the amount of guarantee payment payable to an employee in respect of any day has increased from £19.60 to £20.40.
As there is no statutory cap on the amount a tribunal can award in discrimination cases, the Order does not cover them. The full list of the increases can be found in the Schedule to the Order at www.opsi.gov.uk/si/si2007/uksi_20073570_en_2.
The general tribunal system in the UK is being reformed, under the Tribunals, Courts and Enforcement Act 2007. Since 1 December 2007, tribunal chairmen have been called 'employment judges' as this more accurately reflects the nature of their role.
