Losing at an Employment Tribunal costs more in 2013

New limits on certain Employment Tribunal awards and other payments under employment legislation will increase from 1 February 2013.

These changes are due to publication of the new Employment Rights (Increase of Limits) Order, with changes including:

  • When redundancy payments are calculated, the new figure of £450 per week will be used instead of the former figure of £430.  As a result, the new maximum statutory redundancy entitlement will rise from £12,900 to £13,500.
  • Unfair Dismissal compensation increases from £72,300 to £74, 200.

The new rates will apply where events which lead to a compensation or payment, happen AFTER 1 February 2013 and in the case of Unfair Dismissal, where the date of termination of employment falls on or after that date.  For all issues where the events occurred BEFORE that date, the old rates apply.