With effect from 1 February 2012, certain employment tribunal awards and other amounts payable under employment legislation will increase. The main changes are as follows:
- The limit on the amount of a week's pay for the purposes of calculating statutory redundancy payments and the basic award for unfair dismissal will increase from £400 to £430;
- The maximum compensatory award for unfair dismissal goes up from £68,400 to £72,300; and
- The minimum basic award in cases where the dismissal was unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £5,000 to £5,300.
These rates will apply where the event giving rise to payment occurs on or after 1 February 2012. For example, if someone is made redundant with effect from 1 February 2012, the new rates will apply. However, if a person is made redundant and their employment is terminated prior to 1 February 2012, the old rates will still apply.
The government has also proposed new rates for statutory sick pay and statutory maternity, paternity and adoption pay for 2012 which will come into force on 9 April 2012:
- Statutory maternity, paternity, additional paternity, adoption pay and maternity allowance will increase from £128.73 to £135.45 per week; and
- Statutory sick pay will increase from £81.60 to £85.85 per week.
