Employment Relations Act 1999 s.34 provided for a massive increase in maximum compensatory award on unfair dismissal. It increased the maximum compensatory award limit from £12,000 to £50,000. That increase applied when the effective date of termination (''edt'') is on or after 25th October 1999 (see Employment Relations Act 1999 (Commencement No 2 and Transitional and Savings Provisions) Order 1999, SI 1999/2830, sch 1 and sch 3, para 8). Since then there have been several further increases.

Thereafter statutory compensation limits are generally adjusted annually on 1st February in each year in line with the RPI index at the previous September. However given the one-off increase from 1st October 2009 in the limit on a week's pay which can be taken into account for calculating various employment tribunal awards and the decrease of 1.4% in the index from September 2008 to September 2009 there is no index linking of a week's pay in February 2010.

In addition to compensatory award a successful claimant in an unfair dismissal case is also entitled to a basic award calculated by reference to a fixed formula (see notes at Unfair dismissal/basic award/calculation of (normal cases) ).

The maximum possible award in "normal" unfair dismissal cases in recent years is/has been:

• £18,600 (ie £12,000 plus 30 X £220 for maximum basic award) before 25th October 1999;
  
• £56,600 (ie £50,000 plus 30 X £220) from 25th October 1999 to 31st January 2000;
  
• £56,900 (ie £50,000 plus 30 X £230) from 1st February 2000 to 31st January 2001;
  
• £58,900 (ie £51,700 plus 30 X £240) from 1st February 2001 to 31st January 2002;
  
• £60,100 (ie £52,600 plus 30 X £250) from 1st February 2002 to 31st January 2003;
  
• £61,300 (ie £53,500 plus 30 X £260) from 1st February 2003 to 31st January 2004;
  
• £63,100 (ie £55,000 plus 30 X £270) from 1st February 2004 to 31st January 2005;
  
• £65,200 (ie £56,800 plus 30 X £280) from 1st February 2005 to 31st January 2006;
  
• £67,100 (ie £58,4000 plus 30 X £290 from 1st February 2006 to 31st January 2007;
  
• £69,900 (ie £60,600 plus 30 X £310 from 1st February 2007 to 31st January 2008;
  
• £72,900 (ie £63,000 plus 30 X £330 from 1st February 2008 to 31st January 2009;
  
• £76,700 (ie £66,200 plus 30 X £350) from 1st February 2009 to 30th September 2009;
  
• £77,600 (ie £66,200 compensatory award plus 30 X £380 for maximum basic award) from 1st October 2009 to 31st January 2010 .
  
• £76,700 (ie £65,300 compensatory award plus 30 X £380 for maximum basic award) from 1st February 2010 (the maximum limit on compensatory award is reduced on 1st February 2010 but there is no change in basic award - see above).

For outline notes on increases in effect from 1st February 2009 and decreases in effect from 1st February 2010 (pursuant to the Employment Rights (Increase of Limits) Order 2008, SI 2008/3055 and the Employment Rights (Revision of Limits) Order 2009, SI 2009/3274 ) see Maximum and minimum tribunal awards/statutory limits .

For more detail generally see Maximum and minimum tribunal awards