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New compensation limits are to come into force under the Employment Rights Order next year.
From February 1st 2009, several changes will occur, including the limit on the amount of week's pay used for calculating the likes of redundancy payments and the basic reward for unfair dismissal.
Under the revised version of the Employment Rights Order, this will be increased from £330 to £350, with the maximum compensation awarded for unfair dismissal also set to rise from £63,000 to £66,200.
Employees unfairly dismissed through health and safety, a trade union, employee representative or occupational pension trustee reasons will also receive a greater compensation payout, with the minimum amount now set at £4,700.
Cases which may arise before February 1st will not be subjected to the new legislation, regardless of when the compensation will be awarded.
According to the Better Routes to Redress, published by the Better Regulation Task Force in 2004, there is no compensation culture in Britain because the number of accident claims, including personal injury claims was decreasing.
James Townsend, senior associate in the employment law team at B P Collins comments: "The annual increase in compensation limits, which will come into force from February 2009, is very much in keeping with previous annual increases."
