Compensatory Award Cap Challenge May Go To Court of Appeal

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Posted on 27 Apr 2015

Proceedings to quash the cap of 52 weeks’ pay on the unfair dismissal compensatory award may be heard by the Court of Appeal if it grants leave to appeal at a hearing on 19 May 2015. 

The cap, introduced in July 2013, is being challenged by Compromise Agreements Ltd, on the basis that older people are more likely to be out of work for more than a year. It is therefore indirectly discriminatory on grounds of age. 

Currently the compensatory award is capped at whichever is the lower of £78,335 and 52 weeks' pay.

We will keep you updated on the result of the application.

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