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Employment law changes from the 1st February 2012

Posted on January 01, 2012

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Changes taking effect on the 1st February 2012

As part of the regular updates, from the 1st February 2012:

  • The limit on a week’s pay for calculating statutory redundancy payments has increased £400 to £430. To calculate a statutory redundancy payment see direct.gov.uk/redundancy


  • The maximum compensatory award for unfair dismissal goes up from £68,400 to £72,300. Unless the employee bringing the claim was a high earner, claimants will not get to that statutory cap even if entirely successful. The maximum compensatory award does not include the basic award (equivalent to a redundancy payment). Financial losses in discrimination and whistle-blowing claims are of course uncapped.


  • Guarantee pay increases from the rate of £22.20 a day to £23.50 a day. This covers minimum daily payments for people who may be laid off.


  • 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 £5,000 to £5,300.


Where the dismissal or relevant event falls before 1 February, the old limits will still apply, irrespective of the date on which compensation is awarded.


Further changes are due on the 6th April 2012 this year, including the much vaunted increase from one year to two years continuous service that employees will need in order to be able to claim unfair dismissal.


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