The
minimum Basic Award applies
in some cases of unfair dismissal. As
from 01 February 2009 this minimum increased from £4,400 to £4,700. The minimum Basic Award applies where the principal
reason for a dismissal is for one of the following reasons:
*
trade union membership
or activities: s.152(1) and 153, TULR(C) Act 1992;
*
carrying out duties as a health
and safety representative: s.100(1)(a)-(b), ERA 1996;
*
carrying out duties as a trustee
of an occupational pension scheme: s.102(1), ERA 1996;
*
performing functions or activities as an employee
representative: s.101A(d) and s.103, ERA
1996.
These
statutory compensation limits apply when the relevant date of a breach of the various employment rights occurs
on or after 01 February 2009.
The relevant dates are:
*
for unfair dismissal (basic and compensatory awards) - the effective
date of termination;
*
for unfair dismissal (additional award) - date by which the reinstatement
or re-engagement order
should have been complied with;
*
for redundancy pay - in most cases the effective date of termination
(but see s.145 and s.153 ERA
1996;
*
for guarantee pay - the day for which it is claimed;
*
for insolvency rights - (a) for arrears of pay and holiday pay, the
date of the employer's insolvency;
(b) for statutory notice pay, the later of the date of the employer's
insolvency or the
effective date of termination; (c) for a basic award, the latest of
the date of insolvency or effective
date of termination or date on which the award was made.
Note:
where an employee's contract is terminated by notice, the effective
date of termination (EDT)
is the date on which that notice expires: s.97(1)(a), ERA 1996.
Note:
an employee must bring an unfair dismissal claim within 3 months of
the effective date of
termination (EDT): s.111, ERA 1996. (statutory
maximum limit on a week's pay: £350 - when the relevant date is on/after
01/02/09)
Recap
in an alternative format:
UNFAIR DISMISSAL REMEDIES: financial compensation: s.117-125, ERA 1996 -
there
are three remedies that
an employment tribunal can award to a successful complainant. These
are:
(i) reinstatement;
(ii) re-engagement; or
(iii)
financial compensation.
The
latter remedy consists of three parts (current maximum on or after 01 February 2009):
(1)
basic award: £10,500; s.227(1)(a) ERA 1996
(the limit on a week's pay is £350);
(2)
compensatory award: £66,200; s.124(1) ERA 1996;
(3)
additional award: £9,100-£18,200; s.227(1)(b)
ERA 1996; (for failure to comply with a
reinstatement/re-engagement order) - all additional
awards are for 26-52 weeks' pay; other
awards are -
(4)
redundancy pay: £10,500; s.227(1)(c) ERA 1996; (the limit on a week's
pay is £350);
(5)
guarantee pay: £21.50 - limit on a day's pay during short-time or
temporary lay-off; £107.50 - in respect of five days in any period of three
months; s.31(1)ERA
1996;
(6)
insolvency rights: £350
- limit on a week's pay for recoverable debts; s.186(1) ERA
1996;
(a)
arrears of pay: £2,800;
(i.e. up to 8 weeks)
(b) statutory notice pay: £4,200; (i.e. up
to 12 weeks)
(c)
holiday pay: £2,100; (i.e. up to 6 weeks)
(d) basic award: £10,500; (i.e. up to 20 yrs @ 1½wks)
Compensation
Limits - Page 2 (<<
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