The Government has announced that the new cap on unfair dismissal compensation is expected to come into force on 29 July 2013. This will mean that the maximum compensatory award for a successful unfair dismissal claimant will be whichever is less of £74,200
or one year’s gross pay for the claimant and the new cap will apply to claims where dismissal occurs on or after
29 July 2013.
This means that any employer who is considering dismissing an employee over the next few weeks should think about postponing the dismissal until 29 July 2013 or after. Dismissals which take place on or after 29 July 2013 will be subject to the lower cap on
unfair dismissal compensation and in addition to this the employee will also have to pay fees to bring their employment tribunal claim. All of this means that claimants may find an unfair dismissal claim after 29 July 2013 a far less appealing option.
(The information and opinions contained in this news alert are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Berg or any of its partners or employees. Professional legal advice
should be obtained before taking, or refraining from taking, any action as a result of this news alert.)