Hot off the Press: Challenge - The Statutory Cap

At our recent employment law review we referred to the judicial review challenging the introduction of the statutory cap on compensation awards for unfair dismissal. 

The case was advanced by a London firm aptly named Compromise Agreements.  The main thrust of the argument was that the cap on compensation would disproportionately affect older people, as they are more likely to receive more than one year's salary in compensation due to the difficulties of finding another job. 

The High Court has dismissed the application and the limit of £76,574 (effective as of 6 April 2014) remains. 

For further information or advice please contact Donna Ingleby, head of Rollits employment team at donna.ingleby@rollits.com

Posted on: 19/05/2014

This article is for general guidance only. It provides useful information in a concise form. Action should not be taken without obtaining specific legal advice.

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