A Private Members’ Bill has been considered by the Government which proposes capping compensation payable for unfair dismissal, wrongful dismissal and employment related discrimination following calls from various business groups.  

The current caps of £68,400 for unfair dismissal, £25,000 for wrongful dismissal (with no cap in the civil courts) and the unlimited cap on discrimination would all be scrapped and a new global cap of £50,000 would be introduced.  

Although the Bill is unlikely to become law, the Government has recently announced a review of compensation levels. We will keep you posted of any developments in this area.  

The Tribunals (Maximum Compensation Awards) Bill 2010 – 11