Compensation limits for employment claims increase by 4.6%

The maximum limits for redundancy payments and awards for various employment rights cases have risen in line with the annual index-linked formula.

The limits are linked to the Retail Prices Index, which rose by 4.6% during the qualifying period from September 2009 to September 2010.

The maximum compensation that can be awarded for unfair dismissal rises from £65,300 to £68,400.

The maximum amount of a nominal week’s pay for the purposes of calculating redundancy payments rises from £380 to £400.

The new levels came into effect on 1st February.

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