The House of Commons considered a Private Members’ Bill which would cap all awards for unfair dismissal, wrongful dismissal and employment-related discrimination at £50,000. Unfair dismissal compensation is currently capped at £68,400, and wrongful dismissal is capped in the tribunals (but not the civil courts) at £25,000. Discrimination awards are uncapped.
It was confirmed during the debate that the government has recently consulted over unfair dismissal compensation, and will launch a public consultation on discrimination awards “later in the year”. Although the bill is highly unlikely to become law anytime soon the debate is set to resume on 9 September 2011.