We set out below a round-up of the changes to compensation limits and statutory payments for this year. The most significant increases are those relating to the maximum basic and compensatory awards for unfair dismissal.

Changes applying from 1 February 2012:

Maximum compensatory award for unfair dismissal increases from £68,400 to £72,300. Maximum limit on a week’s pay (for redundancy, unfair dismissal basic awards, etc.) will increase from £400 to £430.

Changes applying from early April 2012:

Standard rates for Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay will increase from £128.73 to £135.45. Statutory Sick Pay will increase from £81.60 to £85.85, with the weekly earnings threshold also rising from £97 to £102. The weekly earnings threshold for these payments will rise from £102 to £107.

In respect of the new rates applying from 1 February 2012 you should note that, for example, with redundancies the rates apply to all dismissals where the effective date of termination falls on or after 1 February 2012.  Where the dismissal or relevant event falls before 1 February, the old limits will still apply.

Paul Whinder
David Israel