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Insight article

April 6, 2014

Unfair dismissal cap changes

As before, the cap does not apply where the reason for dismissal or redundancy selection is carrying out health and safety activities or because the employee made a "protected disclosure" (whistleblowing).

Where the effective termination date fell on or after 29 July 2013, the maximum compensatory award (the unfair dismissal cap) is the lower of £76,574 or 52 weeks’ actual gross pay at the time of dismissal.

The maximum of a week’s pay for calculating basic award entitlement increases to £464, where the effective termination date fell on or after 6 April 2014. Therefore, the maximum basic award (30 weeks’ pay) increases to £13,920.

On the other side of the scale, the introduction of issue and hearing fees for Employment Tribunal cases from 29 July 2013 has so far resulted in a substantial decrease in the number of claims issued.

Call employment lawyer Karen Cole today to learn more about the unfair dismissal cap. 

Note: This article is not legal advice; it provides information of general interest about current legal issues.

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