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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.
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