Annual compensation limit increase for unfair dismissals
  • 23rd Mar 2016

The maximum compensatory award for unfair dismissals (which take effect on or after 6th April 2016) is increasing to £78,962.

Employees who earn less than the maximum compensatory award, will not be able to recover a compensatory award of more than 52 weeks’ pay.  It should be noted that the maximum compensatory award, does not include the basic award, which can be recovered in addition to the compensatory award .

Some dismissal cases, such as those where the reason for the dismissal was that the employee was carrying out health and safety activities or had made a protected disclosure, are not subject to the statutory limit.  Cases involving discrimination are also uncapped.