The Unfair Dismissal (Variation of the limit of Compensatory Award) Order 2013 came into force on 29 July 2013 and was published on 6 April 2013.
The Order limits the compensatory award in most types of unfair dismissal cases at 52 weeks’ pay or £74,200, whichever is the lower. The new limit applies to dismissals where the effective date of termination falls on or after 29 July 2013.
The aim here is to provide employers with more certainty over the cost of any unfair dismissal claim.
However, the statutory cap will still not apply to dismissals for whistleblowing or for certain health and safety reasons. In addition, there is still no limit on the amount that can be awarded in discrimination claims.
For more information on this, contact us on 01483 303636.