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Employment Law

Legal guidance - compliance - software

Veale Wasborough Vizards , 01 MAY 2015

Unfair dismissal compensatory awards - a challenge to the cap

Unfair dismissal compensatory awards - a challenge to the cap
Helen Hughes, Solicitor
Veale Wasbrough Vizards

Compromise Agreements Ltd (CA Ltd), an employment law firm, has appealed a recent High Court decision rejecting their application for judicial review of the introduction of a new statutory cap on unfair dismissal compensatory awards.

In July 2013 a new cap on the compensatory award in unfair dismissal cases was introduced. For dismissals after July 2013, the maximum compensatory award became the lower of the existing numerical cap (which was increased to £78,335 on 6 April 2015) or one year’s salary.

CA Ltd are seeking a judicial review of this on the basis that it indirectly discriminates against older people. CA Ltd argue that older people are more likely to be out of work for more than a year, and therefore should be eligible for more than a year’s salary as compensation.

The hearing of the appeal is due to conclude on 19 May 2015 and we will keep you updated as to the result. 

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