The Employment Tribunal limits increase each year with effect from 1 February. The details of the limits that will apply in 2013 are as follows:

• There will be an increase in the maximum amount of a “week’s pay” from £430 to £450. This is used for the purposes of calculating a basic or additional award of compensation for unfair dismissal and also for statutory redundancy payments.
• The amount of the maximum compensatory award for unfair dismissal is to be increased from £72,300 to £74,200. The maximum basic award will also be increased from £12,900 to £13,500. This means the total maximum award that can be awarded by the Employment Tribunals for successful unfair dismissal claims is £87,700. We have previously covered the fact that the Government is considering reducing the maximum compensatory award. As yet there is no news on whether or when this will be implemented.
• The minimum basic award in cases where a dismissal is deemed unfair because it is connected with health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £5,300 to £5,500.
• Guarantee payments, which are paid during periods of lay-off or short-time working, will be increased from £23.50 a day to £24.20.

The new limits are applicable where the event that gives rise to the award or payment occurs on or after 1 February 2013.

If you would like to talk through a situation you are dealing with, or if you need advice on any aspect of employment law, please contact any member of the Pure Employment Law team (01243 836840 or enquiries@pureemploymentlaw.co.uk).

Please note that this update is not intended to be exhaustive or be a substitute for legal advice. The application of the law in this area will often depend upon the specific facts and you are advised to seek specific advice on any given scenario.