It’s that time of the year again. On the 1st February 2012 the annual inflation-linked increase in the maximum Employment Tribunal awards kicks. Inflation (in September 2011) was running at 5.6% according to the Retail Price Index (“RPI”) so the following award caps have been increased by 5.6%:

1. The maximum award for unfair dismissal
The maximum compensatory award for unfair dismissal has been increased by 5.6% from £68,400 to £72,300

2. The maximum weekly Basic Award
The maximum basic award weekly value has increased from £400 to £430. This has therefore increased the maximum amount for the Basic Award to £12,900 from £12,000

Please note that the new limits only apply to unfair dismissal cases where the Effective Date of Termination is on or after the 1st February 2012.

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Redmans Employment Team deal with employment matters for both employers and employees, including drafting employment contracts and policies, advising employers and employees on compromise agreements, handling day-to-day HR issues, advising on restructures, and handling Employment Tribunal cases for both employers and employees

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