Following consultations, the Government has announced that unfair dismissal compensation will be capped at a maximum of a year’s salary.
At present, the cap on compensatory awards is £72,300 (rising to £74,200 from Feb 2013). This limit will remain in place for anyone whose annual earnings are in excess of this figure.
A date has yet to be set for the introduction of the new cap, though the Government advises that it will be in place by this summer.
Note that compensation awards in respect of any claims involving unlawful HR remain uncapped.
