Seven HR

Annual Increase in compensation limits

It’s that time of year again and the annual increase in compensation limits and levels of awards at tribunals comes into effect as of 1 February 2008. The new rates apply in cases where the event giving rise to compensation or payment occurs on or after 1 February 2007.

These are as follows:

• The limit on the amount of a week’s pay for the purposes of calculating, among other things, statutory redundancy payments and the basic award for unfair dismissal will increase from £310 to £330;
• The maximum compensatory award for unfair dismissal goes up from £60,600 to £63,000;
• Guarantee pay increases from the daily rate of £19.60 to £20.40 per day;
• The minimum basic award in cases where the dismissal was unfair by virtue of health and safety, employee representative, trade union, or occupational pension trustee reasons will increase from £4,200 to £4,400.

As of 6 April 2008 the statutory payments for statutory sick pay, statutory maternity pay, statutory adoption pay and statutory paternity pay in the financial year 2008/2009 are to be increased as follows:

• Statutory Sickness Pay (SSP) is to be increased from £72.55 to £75.40 per week;
• The weekly lower earnings threshold will be £90.00 per week;
• Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), and Statutory Adoptive Pay (SAP) is
• ncreased from £112.75 to £117.85 payable at the applicable rate for the qualifying weeks.

Rebecca Malekottodjary
Solicitor
Gordons LLP