Increase redundancy and tribunal costs

From 1 February 2013 it will become more expensive to make an employee redundant as the statutory cap for a week's pay is increased from £430 to £450. This means that the maximum redundancy payment will be increased to £13,500 for a long serving employee.

In addition, from the same date, the maximum amount a tribunal can award an employee in terms of compensation is increased from £72,300 to £74,200. This figure is on top of the basic award which is calculated in the same way as a statutory redundancy payment. Therefore, a long serving employee who is successful in the employment tribunal could now be entitled to a total of £87,700.

Posted on: 20/12/2012

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.

Back to News articles
Back to News articles

Sign up to email news

Sign up to receive email updates and regular legal news from Rollits LLP.

Sign up