Unfair dismissal – Further changes are planned

It was not enough to extend the qualifying period for employees to be able to claim unfair dismissal to 2 years, the government is now proposing limiting any awards for unfair dismissal to 12 months salary. At the present time, there is no limit subject however to the overall statutory cap (which currently stands at £72,300.00).

Greater emphasis is being placed on settlement agreement between employees and employers with proposals hoping to reduce the amount of litigation in employment disputes.

Whilst reduction in litigation can only be a good thing, the steady erosion of employees’ rights will have the inevitable effect of shifting the balance of power in the employment relationship towards the employer. Good for business? Time will tell.

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