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Employment Law Payments and Awards – A Reminder
Sunday, January 29th, 2012
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Section 34 of the Employment Relations Act 1999 and Article 33 of the Employment Relations (Northern Ireland) Order 1999 provide for an increase or decrease in the following statutory limits each year according to the year-on-year change in the Retail Price Index (RPI) at the previous September.
The Employment Rights (Increase of Limits) Order 2011 provides the statutory framework to apply the increases shown from 01 February 2012. These are calculated according to the statutory formulae, based on the increase in the RPI of 5.6% in the year to September 2011.
At the time of writing, The Employment Rights (Increase of Limits) Order (Northern Ireland) had not been made available. The previous Order was effective 13 February 2011.
The new rate is effective in each case from the “appropriate date” defined in the relevant legislation. For example,
- the new daily guarantee payment limit (£23.50) applies only to days for which the payment is due that fall on or after 1 February 2012.
- the new maximum weekly statutory redundancy rate (£430) applies only where the “relevant date” for the redundancy falls on or after 01 February 2012
| Statutory Provision Effective: |
February 2011 |
February 2012 |
| Minimum basic award for unfair dismissal or selection for redundancy on grounds related to union membership or activities |
£5,000 |
£5,300 |
| Minimum compensation awarded for exclusion or expulsion from a trade union |
£7,600 |
£8,100 |
| Limit on daily amount of guarantee payment |
£22.20 |
£23.50 |
| Minimum basic award for unfair dismissal for participation in health and safety activities, exercise of rights under the Working Time Regulations, activities as a pension scheme trustee, activities as an employee representative in connection with redundancies or a transfer of undertakings |
£5,000 |
£5,300 |
| Limit on amount of compensatory award for unfair dismissal. |
£68,400 |
£72,300 |
| Maximum weekly amount paid from National Insurance Fund to pay contractual debts owed on the insolvency of the employer |
£400 |
£430 |
| Maximum weekly amount of a basic or additional award of compensation for unfair dismissal or redundancy payment. |
£400 |
£430 |
| Award for unlawful inducement relating to union membership or activities, or to collective bargaining |
£3,300 |
£3,500 |
Further Information
