Unfair Dismissal Cap Challenge Fails

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Posted on 19 May 2014

An attempt to quash the new cap on the unfair dismissal compensatory award has failed.

The cap of 52 weeks' pay was introduced last July.   A challenge was made on the basis that the cap was indirectly discriminatory on grounds of age, as older people are more likely to be out of work for more than a year. It was also argued that many older potential claimants would be put off bringing a claim, making the cap indirectly age discrimination in relation to access to justice.

An appeal is being considered.

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