Oppose the cap on unfair dismissal compensation payments

The government has introduced a new law which limits compensation in unfair dismissal claims to one year’s salary, so the lower paid you are, the more this new cap will affect you.

The proposals for reduced compensation are part of a policy to focus expenditure cuts on the disadvantaged, and to alter the balance between employers and the employed, thus making life simpler for employers.

We oppose the new cap for three main reasons:

Firstly it contradicts the point that reasonable compensation should be a deterrent to unfair dismissal, thus making it more likely that employers will use this route.

Secondly it will have most impact on people who are already financially challenged  through low pay, including older, disabled and pregnant people. They will now suffer a “double whammy” from their unfair dismissal and unfair compensation.

Thirdly those affected will now have to claim benefits, so the taxpayer will be funding these cuts, and the guilty corporations will be saving money instead.

What we are doing

Our firm, Compromise Agreements Ltd, is seeking a Judicial Review of the government’s proposal. However, the process requires that the High Court must first agree to that Judicial Review.  “Public interest” has to be demonstrated for the case to have a chance. A petition with a large number of signatories is an excellent way of demonstrating that public interest. Time is short and we need more support.

This is how you can help

Please sign our petition addressed to the Secretary of State for Business, Innovation and Skills, Vince Cable MP, which requests quite simply:

“Please remove the new cap on unfair dismissal compensation for vulnerable people.”

If you would like to know more about the case or the detailed legal arguments, please follow this link www.settlementagreements.org/jr.