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Decrease in Compensation Limits

At present the upper cap on the compensatary award for unfair dismissal claims is £66,200.  This is to be reduced to £65,300 for dismissals that take place on or after 1 February 2010 and reflects the reduction in the retail price index over the last year.  The cap on a weeks pay for the purposes of calculating the basic award in unfair dismissal claims and any redundancy payments remains at £380 per week and is unlikely to be reviewed until February 2011.

The amount of any guarantee payment is to be reduced from £21.50 to £21.20 per day.

From April 2010 it is proposed that statutory adoption pay, statutory maternity pay, statutory paternity pay and maternity allowance shall all rise from £123.06 to £124.88 per week.  Statutory sick pay is likely to remain unaffected at £79.15 per week. 

Angela Gorton, Lupton Fawcett LLP

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