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Emma O'Connor
Emma O'Connor,
HEAD OF TRAINING
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News Report - Judicial review challenge to the new unfair dismissal compensation cap fails
04 June 2014

We reported that employment law firm Compromise Agreements had launched a judicial review challenge to the government’s new unfair dismissal compensation cap. This cap, introduced last summer, limits the maximum compensation that could be awarded for unfair dismissal to either 12 months’ pay or £76,574 – whichever is the lower amount.

Compromise Agreements argued that this new cap was indirectly discriminatory against older workers who – it argued – were likely to be out of work for longer than 12 months. The High Court has; however, dismissed the judicial review application. The founder of Compromise Agreements is reportedly looking at the options – including the possibility of an appeal.

Employers are reminded of the importance of following fair dismissal procedures, including offering the right of appeal against any decision to dismiss. Managers should also be trained in how to follow their internal procedures to avoid slips. For information about disciplinary procedures or advice on employment law training, please contact us on [email protected] or 0118 952 7284.

STOP THE PRESS

UNISON has been given permission to appeal against the High Court’s decision to reject its judicial review of the introduction of fees in the employment tribunal. UNISON plan to use as evidence of the negative impact of fees, the recent employment tribunal statistics which showed a 79% drop in the number of claims being issued between September and December 2013 – after the introduction of fees last July. Plus, according to Twitter reports over the weekend, the Shadow Business Secretary hinted that a Labour government would abolish employment tribunal fees. Watch this space!

For further information, please contact our Employment Team on 0118 952 7284 or submit an enquiry.

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought.

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