The Law Society Gazette has reported that the High Court has dismissed a request for a judicial review challenging the newly introduced alternative cap of one year’s salary in compensation for unfair dismissal. The cap came into force on 29 July last year under the Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013. Previously the cap stood at a fixed maximum (£74,200 at the time the amendment was introduced), but under the new rule the compensation award is capped at either the equivalent of 52 weeks’ gross pay for the claimant, or the fixed statutory limit (now £76,574), whichever is the smaller amount. London firm Compromise Agreements sought the review on the cap arguing that the rule change on compensation will disproportionately affect older people, as they are most likely to receive more than a year’s salary in compensation due to difficulty in finding another job. 

Content Note

The aim is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out full details of all the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided contact us for further information. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.