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Rise in Payments under employment rights legislation - 02-02-2005
New Limits increasing the Awards for Unfair Dismissal and Redundancy Payments in line with inflation have been introduced with effect from 1 February 2005

The increased limits affect

  • statutory redundancy payments;

  • the basic and compensatory awards for unfair dismissal;

  • the limit on guarantee payment made when employees are not provided with work;

  • the minimum basic award for unfair dismissal in health and safety and certain other cases.



The changes have been introduced automatically as part of the requirements of section 34 of the Employment Relations Act 1999, which allows for index linked increases.

The increases apply only when the event giving rise to the payment occurs after the 1 February 2005

The minimum amount of basic award of compensation where dismissal is unfair by virtue of section 152 (1) or 153 of the 1992 Act increases to 3,800.

The minimum amount of compensation awarded by the Employment Appeal Tribunal where individual excluded or expelled from union in contravention of section 174 of the 1992 Act increases to 6,100.

The limit on amount of guarantee payment payable to an employee in respect of any day increases to 18.40

The minimum amount of basic award of compensation where dismissal is unfair by virtue of section 100(1)(a)or (b), 101A(d), 102(1) or 103 of the 1996 Act increases to 3,800.

The limit on amount of compensatory award for unfair dismissal is increased to 56,800.

The limits on amount in respect of any one week payable to an employee in respect of debt to which Part XII of the 1996 Act applies and which is referable to a period of time is increased to 280.

The maximum amount of "a week's pay" for the purpose of calculating basic or additional award of compensation for unfair dismissal or redundancy payment is increased to 280.

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