The Employment Rights (Increase of Limits) Order 2005 was laid
before Parliament on 7 December 2005. The new limits for Tribunal
claims are as follows:
- Maximum amount of "a weeks pay" for the purpose of calculating
a redundancy payment or for various awards including the basic or
additional award of compensation for unfair dismissal - £290.
- Limit on amount of compensatory award for unfair dismissal - £58,400.
- Minimum amount of basic award of compensation for defined dismissals (trade union, health and safety etc) - £4,000.
The order comes into force on 1 February 2006 and the new rates will
apply where the "appropriate day" (e.g. date of termination) falls on
or after that date.
In the same week, the new rates for statutory benefits, to apply
from April 2006, were published. Statutory sick pay will rise to £70.05
per week, and the statutory maternity, paternity and adoption pay will
rise to £108.85 per week. The earnings threshold for entitlement to
these payments will rise to £84 per week.