Compensation Limits From February 2006
Minimum basic award A minimum basic award applies in some cases of unfair dismissal. As from 1 February 2006 this minimum rose from £3,800 to £4,000. The minimum basic award applies where the principal reason for a dismissal is one of the following:
- trade union membership or activities (Ss.152(1) and 153 TULRA)
- carrying out duties as a health and safety representative (S.100(1)(a)–(b) ERA)
- carrying out duties as a trustee of an occupational pension scheme (S.102(1) ERA)
- performing functions or activities as an employee representative (Ss.101A(d) and 103 ERA).
When do the new limits take effect? These compensation limits apply when the relevant date is on or after 1 February 2006, the relevant dates for the various affected employment rights being as follows:
- unfair dismissal – basic and compensatory awards: effective date of termination
- unfair dismissal – additional award: date by which reinstatement/re-engagement order should have been complied with
- redundancy pay: normally the effective date of termination, but see Ss.145 and 153 ERA
- guarantee pay: day for which claimed
- insolvency rights – for arrears of pay and holiday pay, the date of the employer’s insolvency. For statutory notice pay, the later of the date of the employer’s insolvency or the effective date of termination. For a basic award, the latest of the date of insolvency, effective date of termination or date on which the award was made
- unreasonable exclusion/expulsion from union: date of refusal of application for, or expulsion from, membership
- unjustifiable discipline by union: date of determination complained of
- unfair recruitment: date of conduct complained of
- consultation with union on training: date of the alleged failure
- right to be accompanied: date of the failure or threat to fail to allow employee to be accompanied.
The changes are effected by the Employment Rights (Increase of Limits) Order 2005 SI 2005/3352.
Information supplied by Incoms Data Supplies Ltd.
www.idsbrief.co.uk
