Unfair Dismissal Compensation

Around 50,000 unfair dismissal claims are submitted to the employment tribunals each year. In July, the cap on unfair dismissal compensation changed.  The new limit is the lower of 52 weeks' pay and £74,200.  This means an employee earning £25,000 can get a maximum award of £25,000, whereas an employee earning £85,000 can get a maximum award of £74,200. These figures distort what is being awarded in unfair dismissal claims.  The current average award is around £5,000. 

Petra Venton