Government limits unfair dismissal awards to a year’s salary

Overall cap remains unchanged

21 Jan 2013

The government is to limit unfair dismissal awards to a year’s salary, employment relations minister Jo Swinson has said. She said the government had decided not to abolish the overall cap of £72,300.

Swinson said the government would not set guideline awards for settlement agreements (formerly referred to as compromise agreements) but had asked Acas to include template letters in its statutory code of practice.

The changes take the form of amendments to the Enterprise and Regulatory Reform Bill, currently before parliament.

“Employment tribunals are costly for everyone, in terms of money but also time and...

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