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COMPENSATION LIMITS
UPDATED: 01.02.08.

Page 1

The law: Employment Rights (Increase of Limits) Order 2007; SI 2007/3570.

Statutory compensation limits for the period on and after 01 February 2008 are:

 


award                                           ERA 1996        limit                                current maximum

 

unfair dismissal:

Basic award                                   s.227(1)(a)       30 x £330 max week's pay      £9,900

 

Compensatory award                   s.124(1)           no limit on a week’s pay          £63,000

 

Additional award                          s.227(1)(b)      52 x £330 max week's pay       £17,160

(for failure to comply with a                                                                        (all additional

reinstatement/re-engagement                                                                         awards are for

order). £330 limit on a week’s pay.                                                               26-52 weeks’ pay).

                                                                                                                 

Redundancy pay                           s.227(1)(c)       30 x £330 max week's pay      £9,900

 

Guarantee pay                               s.31(1)             £20.40 per day                         £102.00

limit on a day's pay during                                                                           (in respect of 5 days

short-time or temporary lay-off).                                                                   in any period of 3

                                                                                                                        months).

 

Insolvency rights                           s.186(1)           £330 max week's pay     (a) arrears of pay

(limit on a week's pay for                                                                                     £2,640;

recoverable debts is £330).                                                                             (b) statutory notice

                                                                                                                              pay £3,960;

                                                                                                                        (c) holiday pay

                                                                                                                              £1,980;

                                                                                                                        (d) basic award

                                                                                                                              £9,900.

 

Discrimination                                                      no limit                                     no limit

(sex, race, disability, age, etc)

 

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Updated: 01 FEBRUARY 2008


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