Overall cap remains unchanged

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.

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