Employment law compensation limits increase

The main changes to the limits are:

  • an increase in the amount of a 'week's pay' for the purposes of calculating statutory redundancy pay and the basic award for unfair dismissal increases from £430 to £450

  • an increase in the compensatory award for unfair dismissal from £72,300 to £74,200

These apply where the redundancy, dismissal or other event giving rise to the compensation occurs on or after 1st February. The old limits continue to apply where the event takes place before 1st February.


Employers should budget early for the new increases if a potential redundancy, dismissal or other relevant event could take place after 1 February 2013.