UNFAIR DISMISSAL: COMPENSATORY RATE SLASHED
The whole package. Unfair dismissal compensation can have up to three elements: (1) basic, which is based on the employee’s age and length of service, currently capped at £13,500; (2) compensatory, which is based on estimated loss of pay at the time of the hearing, estimated future loss of pay and the loss of benefits and rights; and (3) additional (this element can be awarded if the employer refuses to obey an order to reinstate or re-engage an employee without good reason).
Helpful new law. On 29 July 2013, the Unfair Dismissal (Variation of the Compensatory Award) Order 2013 came into force. It has limited the compensatory element available in the most unfair dismissal claims made on, or after, that date to the lower of either: (1) £74,200; or (2) 52 weeks’ page. As the vast majority of employees will fall into the second category, this is a welcome move for employers.
Tip. It’s quite possible that some employees will seek to bump up their potential compensation by also claiming some form of discrimination, but they’ll quickly come unstuck if their allegations aren’t watertight.
– On 29 July 2013 the compensatory element of an unfair dismissal award was capped at the lower of either £74,200 or 52 weeks’ pay. This is welcome news as most employees will fall into the second category.
“Tips & Advice Personnel” 30.08.13
