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15/12/2010 17:23:20 www.clicklegalservices.co.uk Administrator Posts: 374

The Employment Rights (Increase of Limits) Order 2010 (which authority derives from the Employment Relations Act 1999) comes into force on the 1st of February 2011. It basically allows for the increase on the limit on certain types of employment tribunal award - as well as various other sums payable under employment legislation generally. Therefore the new rates “kick in” where the event giving rise to the entitlement to compensation or payment happens on or after 1 February 2011. For example, in the case of unfair dismissal, the appropriate rate would apply to all dismissals where the effective date of termination falls (the “EDT”) on or after the 1st of February. The changes essentially are: An increase on in the limit on the amount of “a week's pay” for the purposes of calculating pay - such as, statutory redundancy pay, and therefore the “basic” award for unfair dismissal. There will be an increase therefore, from £380 to £400 per week. Also, the maximum “compensatory” award for unfair dismissal goes up from £65,300 to £68,400. The set amount for “guarantee pay” increases from £21.20 a day to £22.20 a day; The minimum basic award - in cases where the dismissal was deemed to be unfair (perhaps because it relates to an occupational pension trustee, health and safety, employee representative/trade union or reason or reasons) increases from £4,700 to £5,000. Conversely, where the dismissal or event falls before 1 February 2011, the old limits will still apply, regardless of the date on which compensation is actually awarded.

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