Cap on unfair dismissal award increases from February 2013

01 February 2013
Cap on unfair dismissal award increases from February 2013

From 1 February 2013, the maximum award that an individual may claim for unfair dismissal at tribunal increases.

The maximum compensatory award, used to compensate a claimant for the financial loss suffered from an unfair dismissal, increases from 72,300 to 74,200.

The basic award, calculated in the same manner as statutory redundancy pay, also increases from 12,900 to 13,500.

The changes will be relevant to employers who are unsuccessful in defending an unfair dismissal which took place on or after 1 February 2013.

The cap does not apply to unfair dismissals related to health and safety or whistleblowing. It also does not apply to awards made for discrimination claims.

For further information, see the dismissals section of HRBird.

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