Implementation of a new unfair dismissal cap

David Reid
30th Jan 2013

Earlier Today, the Department for Business, Innovation & Skills (BIS) has confirmed that a statutory cap of twelve months' pay will be imposed on the unfair dismissal compensatory award.

Team of employment law specialists


However, if twelve months' pay is greater, the existing cap will continue to apply. At the time of writing this was £72,300. However, this will increase to £74,200 on 1 February 2013.


This change, which is expected to take effect in summer 2013, is designed to counter unrealistic expectations from employees, and thereby encouraging earlier settlement and is welcome news for employers.


Find more information here.

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