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Unfair dismissal award to fall by spring

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The maximum award for an employee unfairly dismissed will be reduced next April in order to reflect the retail price index (RPI), the government has announced.

The limit for unfair dismissal will be reduced from £66,200 to £65,300 as stated under the Employment Relations Act 1999. If the RPI for September of one year is high or lower than the previous September, then the government is required to change the maximum award.

“Under section 34 of the Employment Relations Act 1999, if the retail prices index for September of a year is higher or lower than the index for the previous September, the Secretary of State is required to change the limits, by Order, by the amounts of the increase or decrease,” said the note of Statutory Instrument explaining the caps.

“The revised amounts made by this Order reflect the decrease of 1.4% in the index from September 2008 to September 2009.”

There were 52,711 unfair dismissal cases accepted between April 2008 and March this year, a 29% increase on the previous 12 months. But the award for unfairly sacked employees is not the only employment related fee to change next April.

The rate of Statutory Maternity Pay, Statutory Adoption Pay and Statutory Paternity Pay will rise from £123.06 per week to £124.88, but Statutory Sick Pay will remain at £79.15, the Department for Work and Pensions has announced.


Written by Andrew Hodges

January 1, 2010 at 4:49 pm

Posted in Comment, LinkedIn

Tagged with , , ,

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