Following changes to legislation in 2012 requiring employees employed after 5 April 2012 to be employed for 2 years before having a right to claim Unfair Dismissal, the government has now announced it does intend to cap the amount of compensation available to employees at the lower of 52 weeks’ pay or the current limit (£74,200). The order is due to come into effect this month (although a final date has yet to be confirmed).
In practice this will allow employers to better understand what compensation an employee is likely to recover, which is hoped will help promote settlement. In practice this may lead to an increase in whistle-blowing claims and claims for discrimination both of which are not subject to the cap.
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.
Keep up to date with our daily blogs through the Edward Hands & Lewis mobile app, just search Edward Hands on the iPhone or Android store to download our app for free.Talk to our legal team
The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.