The government have agreed and published the annual limits on
compensation that can be awarded via an employment tribunal in
addition to other statutory payments relating to dismissals and
short time working/lay off periods. These increases will take
effect from 1st February 2009.
The increases in compensation and other related costs,
predominately linked to dismissals, whether employees have been
rightly or wrongly dismissed, will place further importance on
making sure that all employers are compliant with employment
The limits are changed in accordance with Section 34 of the
Employment Relations Act 1999. This section states, if the retail
price index (RPI) for September of a year is higher (or lower) than
the RPI of the previous September, the Secretary of State is
required to change the limits, by Order, by the amounts of the
increase (or decrease). Therefore the increases made reflect the
increase in the RPI from September 2007 to September 2008.
Here are some of the key increases:
Statutory Daily Guarantee Payment – Increased by £1.10 to £21.50
A “Weeks” pay – Increased by £20.00 to £350.00
Compensatory Award (Unfair Dismissal) – Increased by £3,200 to £66,200
To find out more about the increase go to: www.opsi.gov.uk
Deminos can help you avoid paying these costs by providing your
business with a virtual HR Department that will give you
professional and realistic ways of managing your workforce, with
the added benefit of Employment Tribunal Insurance should a claim
be made against your company.
For further information contact either the Gateshead office on 0191
460 1111 or our London office on 020 7873 2429 and we can provide
you with a quote or arrange to come and discuss your needs.