Until 1999 the statutory maximum limits on monetary awards which employment/industrial tribunals could make were fixed on a somewhat haphazard and irregular basis. This has now been changed. The Secretary of State must now make annual orders to index-link most maximum limits by reference to changes in RPI for September, up or down, in each year (see Employment Relations Act 1999 s.34 and notes at Indexation of awards ).

The Work and Families Act 2006 s.14 allows the Secretary of State to make a one-off, once only, increase by more than inflation. He is given power to suspend the inflation linking requirement for the year in which he exercises this power.

Other major changes were made with effect from 25th October 1999. As from that date the previous £12,000 limit on compensatory award was jacked up to £50,000 (Employment Relations Act 1999 s.34(4) and Employment Relations Act 1999 (Commencement No 2 and Transitional and Savings Provisions) Order 1999, SI 1999/2830). The position in unfair dismissal cases thus became as follows:

• £18,600 was maximum possible award in "normal" unfair dismissal cases immediately before 25th October 1999 (ie £12,000 plus 30 X £220 for maximum basic award).

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

• £56,600 from 25th October 1999 to 31st January 2000 (ie £50,000 plus 30 X £220);
  
• £56,900 from 1st February 2000 to 31st January 2001 (ie £50,000 plus 30 X £230);
  
• £58,900 from 1st February 2001 to 31st January 2002 (ie £51,700 plus 30 X £240);
  
• £60,100 from 1st February 2002 to 31st January 2003 (ie £52,600 plus 30 X £250);
  
• £61,300 from 1st February 2003 to 31st January 2004 (ie £53,500 plus 30 X £260)
  
• £63,100 from 1st February 2004 to 31st January 2005 (ie £55,000 plus 30 X £270).
  
• £65,200 from 1st February 2005 to 31st January 2006 (ie £56,800 plus 30 X £280).
  
• £67,100 from 1st February 2006 to 31st January 2007 (ie £58,400 plus 30 X £290).
  
• £69,900 from 1st February 2007 to 31st January 2008 (ie £60,600 plus 30 X £310)
  
• £72,900 from 1st February 2008 to 31st January 2009 (ie £63,000 plus 30 X £330)
  
• £76,700 from 1st February 2009 to 30th September 2009 (ie £66,200 plus 30 X £350)
  
• £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 to 31st January 2011 (the maximum limit on compensatory award was reduced on 1st February 2010 in line with the 1.4% reduction in RPI for the 12 months to September 2009 - Employment Rights (Revision of Limits) Order 2009, SI 2009/3274 ).
  
• £80,400 from 1st February 2011 (ie £68,400 compensatory award plus 30 X £400 for maximum basic award)

• £85,200 from 1st February 2012 (ie £72,300 compensatory award plus 30 X £430 for maximum basic award)

Thus from 1st February 2011 the maximum possible award in "normal" unfair dismissal cases increases from £80,000 to £85,200 (ie £72,300 plus 30 X £430). For details see the Employment Rights (Increase of Limits) Order 2011 SI 2011/3006, which also provides for other increase including an increase in the daily guarantee payment limit from £22.20 to £23.40 (see generally see Compensation/2011 limit increases ).

The main change in effect from 1st February 2010 was a reduction in the limit on compensatory award for unfair dismissal from £66,200 to £65,300 in line with the 1.4% reduction in RPI for the 12 months to September 2009 (Employment Rights (Revision of Limits) Order 2009, SI 2009/3274 and see notes at Indexation of awards and/or Compensation/2010 limit changes ). There was no change on 1st February 2010 to the £380 per week limit on week's pay which was introduced on 1st October 2009 by the Work and Families (Increase of Maximum Amount) Order 2009, SI 2009/1903

There is no statutory cap on compensation payable under the Sex, Race and Disability Discrimination legislation (see Discrimination/a general note ) or the "whistle blower" provisions (see the Public Interest Disclosure Act 1998). There is a limit of £25,000 on awards made by tribunals in breach of contract (ie wrongful dismissal ) cases. Also the statutory cap on compensation which a tribunal can award in unfair (as opposed to wrongful) dismissal cases is as a general rule removed altogether in cases where the dismissal is automatically unfair - see Unfair dismissal/automatically unfair dismissals .