Goodbye to the Cap on Compensatory Awards for Unfair Dismissal

The government has published an amendment to the Employment Rights Bill abolishing Section 124 of the Employment Rights Act 1996, concerning the cap on unfair dismissal compensatory awards.  Currently the cap is £118,223, or a year’s pay, whichever is the lower.

It appears a quid pro quo arrangement may have been put together whereby the government has accepted a 6-month qualifying period to claim unfair dismissal, for a complete removal of the cap.

To read the amendment click here