Additional cap on compensation takes effect

Posted by Ruth Christy on
The additional cap on the compensatory award for unfair dismissal took effect on Monday 29 July.

The statutory cap is now of the lower of £74,200 or 52 weeks' pay of the individual concerned for dismissals on or after 29 July. A 'week's pay' is defined in the Employment Rights Act 1996 but is likely to mean gross pay.

We have updated our employment handy fact card to reflect this.

The fixed cap (£74,200) will be changed again in April 2014 rather than February 2014.

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