26 February 2014

Increase in compensatory awards and a definitive decision on post-employment victimisation

The Employment Rights (Increase of Limits) Order 2014 comes into force on 6 April 2014 raising the maximum compensatory award from £74,200 to £76,574 and the maximum for a week's pay from £450 to £464.  The cap of a year's salary will still apply to the compensatory award for unfair dismissal where this is less than the new maximum.

 In other news...the EHRC have reported that they welcome the Court of Appeal's ruling that post-employment victimisation is proscribed by the Equality Act 2010.  The case of Jessemey v Rowstock Limited concerned an employee who complained of age discrimination and was then given a bad reference by his former employer as a result.   A drafting error at s108(7) of the Equality Act 2010 resulted in the EAT holding that the claim could not proceed.   Shortly afterwards another EAT came to the completely opposite conclusion in a similar case and so there has been conflicting case law on whether or not claims for post-employment victimisation can be brought.  The Court of Appeal's ruling clears this up, however we're still not sure how the necessary change to the wording of the Act will be implemented.

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