Maximum compensatory award to go down

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18 December 2009

For the first time ever, the maximum compensatory award for unfair dismissal is to be reduced following the annual review of compensation limits. 

The maximum compensatory award will drop from £66,200 to £65,300. This will apply where the effective date of termination occurs on or after 1 February 2010.

The maximum amount of a week's pay used, for example, when calculating the basic award for unfair dismissal and statutory redundancy payments, will remain the same at £380.

If you would like any further information, please email the employment, pensions and incentives unit at Burges Salmon at

If you would like advice on a specific instance, please contact Chris Seaton on 0117 939 2000 or email or contact the lawyer at Burges Salmon with whom you usually deal.

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