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Imposing a cap on the unfair dismissal compensatory award of twelve months` pay (and still capped at the current limit, if twelve months` pay is greater)

18 January 2013 #Employment

Subject to Parliamentary process, the Government announced yesterday that it  intends to introduce a 12 months’ pay cap on the compensatory award for unfair dismissal.

On the issue of whether the overall cap is currently set at an appropriate level, the Government has been considering the option of a cap on individual awards of 12 months pay alongside the overall cap where the applicable limit is the lesser of the two figures.  The reasoning behind is to encourage more realistic perceptions of the likely level of awards, thereby encouraging earlier resolution of employment disputes.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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