The Government has announced that from 29 July 2013, the Compensatory Award for unfair dismissal claims in the Employment Tribunal will be capped at £74200 (at present rates) or 12 months' pay, whichever is smaller.
The cap does not affect the Basic Award.
The cap would not apply to compensation for other claims, for example discrimination.
In practice, this change will not make much difference because it is rare for an Employment Tribunal to make an award of more than 1 year's pay for an unfair dismissal claim.
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Disclaimer
This blog post is intended for information only. It is not intended to amount to legal advice or be relied on in legal proceedings and readers are advised to take specialist legal advice at all times.
