On 29 July, new legislation was introduced which limits compensation awards in unfair dismissal claims.
The Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013 sets the maximum amount of compensation which can be claimed for unfair dismissal to the lower of £74,200 or 52 weeks’ pay.
Any claim where the effective termination date is on or after 29 July 2013 will be affected by the new rules.
Employers may be relieved that the compensation awards are no longer unlimited, but this is at the expense of a worse deal for claimants, especially for those in lower paid jobs.
Amy Hallam, Employment Law Solictor.