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United Kingdom Statutory Instruments


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URL: http://www.bailii.org/uk/legis/num_reg/2005/20053352.html

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STATUTORY INSTRUMENTS


2005 No. 3352

TERMS AND CONDITIONS OF EMPLOYMENT

The Employment Rights (Increase of Limits) Order 2005

  Made 4th December 2005 
  Laid before Parliament 7th December 2005 
  Coming into force 1st February 2006 

The Secretary of State, in exercise of the powers conferred on him by section 34 of the Employment Relations Act 1999[1], makes the following Order:

Citation, commencement and interpretation
     1. —(1) This Order may be cited as the Employment Rights (Increase of Limits) Order 2005 and shall come into force on 1st February 2006.

    (2) In this Order —

Revocation
     2. Subject to article 4, the Employment Rights (Increase of Limits) Order 2004[4] is revoked.

Increase of limits
     3. Subject to article 4, each of the limits referred to in the first and second columns of the Table in the Schedule to this Order is increased by the substitution, in place of the old amount specified in the third column, of the new amount specified in the fourth column.

Transitional provisions
    
4. —(1) The increases provided for in article 3 have effect in any case where the appropriate date falls on or after 1st February 2006.

    (2) In a case where the appropriate date falls before 1st February 2006, the limits having effect in relation to the case immediately before 1st February 2006 continue to apply.

    (3) In this article "the appropriate date" means —


Gerry Sutcliffe
Parliamentary Under Secretary of State for Employment Relations and Consumer Affairs Department of Trade and Industry

4th December 2005



SCHEDULE
Article 3

TABLE OF INCREASE OF LIMITS

           Column 1 Column 2 Column 3 Column 4
           Relevant statutory provision Subject of provision Old Limits New Limits
1 Section 145E(3) of the 1992 Act[16] Amount of award for unlawful inducement relating to trade union membership or activities, or for unlawful inducement relating to collective bargaining. £2,500 £2,600
2 Section 156(1) of the 1992 Act[17] Minimum amount of basic award of compensation where dismissal is unfair by virtue of section 152(1) or 153 of the 1992 Act. £3,800 £4,000
3 Section 176(6A) of the 1992 Act[18] Minimum amount of compensation where individual excluded or expelled from union in contravention of section 174 of the 1992 Act and not admitted or re-admitted by date of tribunal application. £6,100 £6,300
4 Section 31(1) of the 1996 Act Limit on amount of guarantee payment payable to an employee in respect of any day. £18.40 £18.90
5 Section 120(1) of the 1996 Act[19] Minimum amount of basic award of compensation where dismissal is unfair by virtue of section 100(1)(a) and (b), 101A(d), 102(1) or 103 of the 1996 Act. £3,800 £4,000
6 Section 124(1) of the 1996 Act Limit on amount of compensatory award for unfair dismissal. £56,800 £58,400
7 Paragraphs (a) and (b) of section 186(1) of the 1996 Act Limit on amount in respect of any one week payable to an employee in respect of a debt to which Part XII of the 1996 Act applies and which is referable to a period of time. £280 £290
8 Section 227(1) of the 1996 Act[20] Maximum amount of "a week's pay" for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal. £280 £290



EXPLANATORY NOTE

(This note is not part of the Order)


This Order increases, from 1st February 2006, the limits applying to certain awards of employment tribunals, and other amounts payable under employment legislation, as specified in the Schedule to the Order.

Under section 34 of the Employment Relations Act 1999, if the retail prices index for September of a year is higher (or lower) than the index for the previous September, the Secretary of State is required to change the limits, by Order, by the amounts of the increase (or decrease). The increases made by this Order reflect the increase in the index from September 2004 to September 2005.

The increases apply where the event giving rise to the entitlement to compensation or other payments occurred on or after 1st February 2006. Limits previously in force under the Employment Rights (Increase of Limits) Order 2004 (S.I. 2004/2989) are preserved by article 4 of the Order in relation to cases where the relevant event was before that date.

A Regulatory Impact Assessment has not been produced in relation to this Order since it will have no impact on the costs of business.


Notes:

[1] 1999 c.26.back

[2] 1992 c.52.back

[3] 1996 c.18.back

[4] S.I. 2004/2989.back

[5] Section 70C was inserted by the Employment Relations Act 1999, section 5.back

[6] Section 145A was inserted by the Employment Relations Act 2004 (c.24), section 29.back

[7] Section 145B was inserted by the Employment Relations Act 2004, section 29.back

[8] Section 176 was substituted by section 14 of the Trade Union Reform and Employment Rights Act 1993 (c.19).back

[9] Schedule A1 was inserted by the Employment Relations Act 1999, sections 1(1) and 1(3) and Schedule 1.back

[10] Section 117(3) was amended by the Employment Relations Act 1999, section 33(2).back

[11] Section 145(7) was repealed by the Employment Relations Act 1999, sections 9 and 44; Schedule 4, Part III, paragraphs 5 and 26; and Schedule 9.2.back

[12] 1998 c.39.back

[13] Section 11(1) was amended by the Employment Relations Act 2004, section 37(2).back

[14] 2002 c.22.back

[15] S.I. 2002/3207.back

[16] Section 145E(3) was inserted by the Employment Relations Act 2004, section 29.back

[17] Section 156(1) was amended by the Employment Rights Act 1996, section 240 and Schedule 1, paragraphs 56(1) and 56(9).back

[18] Section 176(6A) was inserted by the Employment Relations Act 2004, section 33(6).back

[19] Section 120(1) was amended by the Working Time Regulations 1998 (S.I. 1998/1833), regulation 32(5).back

[20] Section 227(1) was amended by the Employment Act 2002, section 53 and Schedule 7 paragraphs 24, 47(1), 47(2) and 47(3).back



ISBN 0 11 073756 3


 © Crown copyright 2005

Prepared 14 December 2005


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