Compensation laws

February 1 saw an increase to the limits to employment tribunal awards and other amounts payable under employment legislation.

Oliver McCann, Head of Employment at Taylors Solicitors explains that the increase to the limit for unfair dismissal compensation is a significant leap and in stark contrast compared to the reduction last year.

“This Order means an increase of just over £3000 to the maximum compensatory award for unfair dismissal cases from £65,300 to £68,400. This is certainly a big hike after employers were last year treated, for the first time, to a reduction in the compensatory limit for unfair dismissal.

“During the recession there has been a notable rise in claims with many employees having nothing to lose but to pursue a claim. The increase in the compensatory limits increases an employer’s exposure, particularly at a time when restructures and redundancies and can lead to employment disputes.”

However it’s not all bad news for employers as the increases come at a time when the government has just proposed a reform to the Employment Tribunal system.

“The government proposes to introduce a fee to lodge a claim, increase the length of qualifying employment for such a claim from one to two years and introduce compulsory mediation for all tribunal claims.”

Oliver McCann
Head of Employment Law
Taylors Solicitors