Compensation limits to increase in 2013

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The Government has published the Employment Rights (Increase of Limits) Order 2012. Compensation limits are set to increase next year.

The key limits to be aware of are as follows:

  • compensatory awards for unfair dismissal will rise from £72,300 to £74,200;
  • limit on a week’s pay used to calculate redundancy payments and the unfair dismissal basic award will increase from £430 to £450; and
  • the maximum guarantee payment payable to an employee in respect of any day under the Employment Rights Act 1996 will rise from to £23.50 to £24.20.

The revisions made by the Order will take effect when the event giving rise to the entitlement to compensation/other payment occurs on or after 1 February 2013.

Click here to see a copy of the Employment Rights (Revision of Limits) Order 2012.


Media Team 020 7654 1576

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