Cap on Unfair Dismissal Awards Drops
The awards made by employment tribunals are amended each year in line with the Retail Price Index. Changes come into effect on first of February every year based upon the fluctuation of the RPI.
This year there was a drop in the RPI between September 2008 and September 2009 and so unusually the new figures show a drop in their limits. Most significantly the cap on the compensatory limit for unfair dismissal claims drops almost £1,000 from the current limit of £66,200 to £65,300. This is the first occasion that this figure has fallen.
Significantly on 1st February 2010 there was no change in the calculation of a weeks pay, which is taken into account in the calculation of statutory redundancy pay and the basic award for unfair dismissal. This remains at the current level of £380.
