'Rounding up' continues for maximum tribunal awards and redundancy pay
11th January 2012
In his speech, 'Reforming employment law', Business Secretary Vince Cable announced that future tribunal award and redundancy payment limits would be "rounded to the nearest pound". With a 5.6% increase in the September 2011 RPI, this means that the maximum tribunal compensatory award for ordinary unfair dismissals should increase to £72,230 and the maximum week's pay for the basic award should to £422 for dismissals where the effective date of termination is 1 February 2012 or later.
Under the "rounded to the nearest pound" formula, the maximum week's pay for redundancy should also increase to £422 for dismissals where the relevant date is on or after 1 February 2012, and these figures have been reported in Citation's January 2012 Personnel & Employment Law update.
Unfortunately for Mr Cable, actions speak louder than words and, as previously, the maximum tribunal compensatory award will be rounded up to the nearest £100 (to £72,300) and the maximum week's pay for the tribunal award and for redundancy will be rounded up to the nearest £10 (£430).
Statutory guarantee pay will increase from 1 February 2012 to a maximum of £23.50 a day (from £22.50).
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