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New compensation limits for dismissals set for 2013

New compensation limits have been set by the Government for unfair dismissals and will come into force from February 2013.

The limit on compensation for unfair dismissal will be raised to £74,200 from £72,300.

The limit on a week's pay, used to calculate redundancy payments or for unfair dismissal compensation will go up to £450 from £430.

Minimum basic awards have also been raised. They have risen to £5,500 from £5,300 for unfair dismissal or selection for redundancy on grounds related to union membership or activities, as well as dismissals for health and safety cases, and those concerning employee representatives and trustees of occupational pension schemes.

The minimum compensation for individuals excluded or expelled from a union and not admitted or re-admitted by the date of a tribunal application has risen to £8,400 from £8,100.

The new rates apply to cases in which the events leading to a claim happen on or after 1 February 2013.

Acas can provide detailed help and guidance on all issues related to Dismissing employees, and runs practical Training and Business Solutions to equip managers, supervisors and HR professionals with the necessary skills to deal with employment relations issues.

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