The annual increase in employment rights payments comes into effect on the 1st February 2009.

The most notable changes are as follows :-

• Limit on the amount of a weeks pay for the purpose of calculating amongst other things statutory redundancy payments and the basic award for unfair dismissal will increase from £330 to £350.
• The maximum compensatory award for unfair dismissal goes up from £63,000 to £66,200.
• The new rates apply where the events give rise to compensation or payment on or after the 1st February 2009.  In an unfair dismissal case for example the rates will apply to all dismissals where the termination falls on or after the 1st February 2009.  If the dismissal took effect before the 1st February 2009 then the old limits would still apply.
• 2009 is also going to bring into effect the much awaited overturning of the statutory disciplinary and grievance procedures which trigger awards for automatically unfair dismissal.  We will cover this area in our next update.