Anyone dismissed on or after the 29 July 2013 will be subject to a new cap on compensation they are entitled to. The cap will be the lower of the current ceiling on unfair dismissal claims of £74,200 and 12 months’ pay.
The hope is the new cap will provide more certainty for employers in terms of what compensation an employee could be entitled to. In turn it is hoped that it will be easier to negotiate a settlement with an employee.
Importantly the cap does not apply to cases involving discrimination claims or in claims involving whistle-blowing which could see an increase in these types especially as 2 years qualifying service is now required to bring a claim for Unfair Dismissal.
Andrew is a Commercial & Employment Law solicitor in Leicester. Our Solicitors in Leicester are experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Leicester please contact us.
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