New limits for unfair dismissal and redundancy payments

Payments and awards made to workers in employment rights cases are to rise in line with inflation.

The Employment Rights (Increase in Limits) Order (Northern Ireland) 2012  made by the Department for Employment and Learning brings these new limits into operation from 4th March 2012.

The increased limits relate to a range of employment rights including statutory redundancy payments; the basic and compensatory awards for unfair dismissal; the limit on guarantee payments made when employees are not provided with work; and the minimum basic award for unfair dismissal in health and safety and certain other cases. For example, the limit on the award for unfair dismissal is raised from £68,400 to £72,300 while the maximum amount of ‘a week’s pay’ for the purpose of calculating redundancy payment rises from £400 to £430.

For legislation see link below. For more details see under C in A-Z new window)