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News & Blog

Unfair dismissal claims – update

In our last newsletter, we reported on the position regarding statutory caps for compensation for Unfair Dismissal claims.

The current cap is fixed at £74,200, but the Secretary of State now has the power to amend the statutory limit at any time. As expected, it has just been announced that the Secretary of State is going to exercise this power and the cap on compensation for Unfair Dismissal claims will be limited to either £74,200 or one year’s pay, whichever of the two is lower. This change will take effect from 29 July 2013 and it will apply to all matters where the effective date of termination is after that date.

There is speculation about whether the Secretary of State will exercise the power to limit the cap further; to either £28,000 or one year’s pay, whichever of the two is lower. We will keep you updated!

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