As part of the recent shake up in employment law the government
capped the award available for claims of unfair dismissal.
The cap used to be £74,200, which was the maximum employees could
be awarded for claims in a tribunal. This has now been
changed to either 12 months' pay or £74,200 whichever is the
lower.
It has been suggested that it may help manage the expectations
of some claimants, particularly those who focus on the £74K figure
as a potential pay out if they bring a claim against their
employer. Equally it will help employers assess the risks of
employees bringing a claim.
It is arguable that the reduction in the value of a potential
award might lead to more claimants looking to explore and bring
claims for discrimination where there is currently no cap on
compensation.
What can I do to protect my business?
It is vital to ensure you have up to date disciplinary and
capability procedures in place and you follow them if you have
issues with your employees to safeguard and reduce the risk of
claims by employees.
If you have a dispute with an employee, or would like to talk
about any employment matters please call on my direct line (01273
447069) or email me at Nicole.Humphreys@acumenbusinesslaw.co.uk.