**Please note that these figures will change again on 1 February 2013, an update has been posted here: Increase in Redundancy and Unfair Dismissal Compensation 2013/2014.

As of 1 February 2012 the following changes will take effect. The changes only affect claims where the date of dismissal falls on or after 1 February 2012:

Increase in Redundancy Entitlement

Statutory redundancy is based on an employee’s gross weekly pay which is subject to a maximum cap of £400.00. That maximum cap will increase on 1 February 2012 to £430.00 as will the same cap on unfair dismissal basic awards meaning that employees who are made redundant after that date may be entitled to a larger payment than those who are made redundant earlier.

In 2011 the maximum statutory redundancy entitlement (with the £400.00 per week cap) was £12,000.00.

The maximum statutory redundancy entitlement in 2012 (with the £430.00 per week cap) will be £12,900.00.

Click here to calculate your statutory redundancy entitlement.

Increase in Maximum Award for Unfair Dismissal

The maximum amount which the employment tribunal can award as compensation in unfair dismissal claims will increase from £68,400.00 to £72,300.00.

These changes are being introduced by the Employment Rights (Increase of Limits) Order 2011 SI 2011/3006.

Gustav Patrick
Employment Lawyer