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New rates for Statutory maternity pay, sick pay, and Tribunal compensation limits announced

28th December 2011
The Government has announced the new rates for statutory maternity pay, and sick pay that will apply from April 2012. In addition they have also announced the new compensation limits available in the Employment Tribunal.

From April 2012 the following rate will be payable for Statutory Maternity Pay, Paternity Pay, and Adoption Pay:

£135.45 per week (a rise from £128.73 per week

For Statutory Sick Pay the rate will be:

£85.60 (a rise from £81.60 per week)

New compensation rates have been announced that will apply to awards and other amounts payable under employment law legislation from 1st February 2012. These figures take account of the adjustments with the Retail Price Index. 

Statutory Redundancy Pay(and Unfair Dismissal "Basic Award"):-

The "weekly" figure used in this calculatiion will rise to £430 (from the current rate of £400).

Guarantee Payment

This will rise to £23.50 per day (from the current rate of £22.20 per day).

Minimum Basic Award in cases where the dismissal was unfair because of health and safety, employee representative, trade union, or occupational pension trustee reasons.

This will rise to £5,300 (from £5,000)

Maximum "Compensatory Award" for unfair dismissal (usually awarded in addition to the "basic award")

This will rise to £72,300 (from the current maximum of £68,400).

So far as the basic and compensatory awards for unfair dismissal are concerned, the increases will (as usual) only apply where the dismissal occured on or after the 1st February 2012. In a case where the dismissal occured before that date the old compensation rates will apply.

Clearly despite the econimic pressures prevailing at the moment, these increases indicate that the cost of compensation in the Employment Tribunals may well still rise. This makes it all the more important for employers to carry out any dismissal fairly and reasonably. At Hallett Employment Law Services Ltd we can give you the guidance you need to help you reduce the risk of facing any order for compensation being made against your business in an Employment Tribunal.

If you want any further advice on this matter do not hesitate to contact us.     

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