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.


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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