Some legal clarifications:
The current limit for the 'compensatory award' part of an unfair dismissal claim that an Employment Tribunal may award is: £68,400 for dismissals that have occurred since 1 February 2011. The previous amount (which I assume is the relevant figure since he was dismissed before that date) was £65,300.
The 'compensatory award' is made at the discretion of the Tribunal. That is the maximum the ET can award: it will normally be a lot less. The factors used by the ET to establish what compensatory award should be made are rather long-winded.
There is also the 'basic award', which is calculated according to length of service, age and salary.
Either way, the amount an Employment Tribunal may legally award in an unfair dismissal case is more than the amount of compensation agreed in the out-of-court settlement here.
Generally speaking, it is the type of court rather than the type of claim that determines the compensation limit.
Hope that helps.
Nick
Last edited by Nicholas49; 23rd Mar 2011 at 13:07.