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    BASIC POSITION

    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 was 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:

    For more detail see notes at Compensation generally and/or at Maximum and minimum tribunal awards


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    updated Jan2011
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