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Draft order published to Cap Unfair Dismissal Awards at 12 months’ pay

Posted on Monday, 22nd July 2013 by

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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.

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Andrew Robinson - Employment Law
Andrew Robinson - Employment Law
andrew.robinson@ehlsolicitors.co.uk 01509 212 108
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