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Employment Law Services Ltd

New Compensation Limits and Maternity and SicK Pay Rates Announced

23rd December 2010
Each year the Government reviews the maximum awards that the Employment Tribunals can order. The new figures that will apply from the 1st February 2011 have been announced.

The changes include the following:-

The maximum compensatory award for unfair dismissal will rise from £65,300 to £68,400.

The amount used in the calculation of a week's pay (used in calculating Statutory Redundancy Pay and the Basic Award for unfair dismissal) will rise from £380 to £400.

These changes will only effect the assessment of compensation in cases of unfair dismissal where the dismissal takes place on or after the 1st February 2011. Until then the current rates still apply (see our Free Factsheets for details).

The "guarantee payment" rate will also rise from the same date from the current rate of £21.20to £22.20 per day.

The minimum basic award in cases where the dismissal was unfair because of health and safety, employee representative, trade union, or occupational pension trustee duties or functions will rise to £5,000 from £4,700.

New rates for Statutory Maternity Pay, and Adoption Pay, and Paternity Pay have also been announced. The rate will rise to £128.73 from £124.60 (nb the first period of Statutory Maternity Pay is still to be paid at the rate of 90% of the employees usual weekly pay).Statutory Sick Pay will also rise to £81.60 from £79.15.These rises are due to take place on 11th April 2011.

As always employers need to be aware of these changes, particularly in order to ensure that the correct rates of pay are in fact paid.

If you have any questions please do not hesitate to contact us.
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