The Employment Rights (Increase of Limits) Order 2007, which details the annual inflation-linked increase in limits on the amounts which can be awarded by employment tribunals, was made on 18 December 2007 and applies where the appropriate date falls on or after 1 February 2008.

The main increases in compensation limits are:

the maximum compensatory award for unfair dismissal has increased from £60,600 to £63,000;

the maximum amount for a week’s pay (for calculating basic award or redundancy payment) has increased from £310 to £330; and

the limit on the amount of guarantee payment payable to an employee in respect of any day has increased from £19.60 to £20.40.

As there is no statutory cap on the amount a tribunal can award in discrimination cases, the Order does not cover them.

The full list of the increases can be found in the Schedule to the Order at http://www.opsi.gov.uk/si/si2007/uksi_20073570_en_2.

The general tribunal system in the UK is being reformed, under the Tribunals, Courts and Enforcement Act 2007. Since 1 December 2007, tribunal chairmen have been called ‘employment judges’ as this more accurately reflects the nature of their role.

This publication contains information which is intended for general guidance only. The information is provided in a concise form and is not substitute for obtaining legal advice. If you would like advice specific to your circumstances, please contact us.