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New limits on awards for unfair dismissal and redundancy payments

Monday, 16 February 2009

The Department for Employment and Learning today announced that payments and awards made to workers in employment rights cases are to rise in line with inflation.

An Order made by the department brings these new limits into operation from 15 February 2009.

The increased limits relate to a range of employment rights including statutory redundancy payments; the basic and compensatory awards for unfair dismissal; the limit on guarantee payments made when employees are not provided with work; and the minimum basic award for unfair dismissal in health and safety and certain other cases.

For example, the limit on the award for unfair dismissal is raised from £63,000 to £66,200 while the maximum amount of ‘a week’s pay’ for the purpose of calculating redundancy payment rises from £330 to £350.

Legislation adjusting limits relating to a range of employment rights is made annually to reflect changes in the rate of inflation as measured by the Retail Prices Index (RPI).

Notes to Editors:

  1. Article 33 of the Employment Relations (Northern Ireland) Order 1999 provides that the limits on various awards and payments under employment legislation will be index-linked, i.e. will be varied by Order if the Retail Prices Index (RPI) for September of a year is higher or lower than the index of the previous September.
  2. The new limits reflect changes in the RPI between September 2007 and September 2008 (5.0% - source: ONS, all items RPI).
  3. The Department for Employment and Learning is legally required to make the up-rating Order and to bring the new limits into operation as soon as practicable. The changes being made involve no changes to the structure of awards and other payments, or to employers’ management systems.
  4. Printed copies of the Order are available from the Stationery Office, 16 Arthur Street, Belfast. The Order can also be viewed online at http://www.opsi.gov.uk/sr/sr2008/pdf/nisr_20080047_en.pdf
  5. A table of the increase of limits can be viewed at http://www.delni.gov.uk/newlimits
  6. Media enquiries to the Department for Employment and Learning Press Office on 028 9025 7872. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.