Employment e-Brief – Cap on unfair dismissal awards to come into force soon
The Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013 has been laid before parliament. This limits the compensatory award in an unfair dismissal case to the lower of £74,200 or 52 weeks’ pay, which must be good news for employers. Although the exact commencement date is not yet known, but it is expected to come into force sometime in July. Anyone who is dismissed after the date it comes into force will have their compensatory award limited to that level.
The limit will not impact discrimination claims which remain unlimited.
We will report further as soon as we know the in force date.