Judicial review proceedings are launched against cap
Employment law firm, Compromise Agreements, has launched judicial review proceedings against the government’s new cap on unfair dismissal compensation.
The new unfair dismissal compensatory award ceiling is now the lesser of a week’s pay x 52 or £74,200. Previously, the cap was set at £74,200.
Alex Monaco, solicitor at Compromise Agreements, says: “The cap will disproportionately affect more elderly claimants on lower incomes.
“If you’re on minimum wage you will now only be able to claim about £12,000 (one year’s money) rather than £24,000 (two year’s money). Consequently, the claimant may need to claim benefits, the government won’t save a penny, and the only ones winning will be unscrupulous employers.”
Monaco explained that the courts have been reluctant to give more than a year’s salary to successful claimants unless they are nearing retirement age and therefore unlikely to get another job.
“It will affect a relatively low number of people but these caps are often in place for ten years or more,” he said.
“We say the government hasn’t assessed the impact of this law properly or weighed up the effect on protected groups. They don’t even mention pregnant women in their assessment.”
The grounds of the challenge are indirect discrimination, potential discrimination against other vulnerable groups, and failure to adequately consult. Peter Oldham QC and barrister Patrick Halliday, both of 11KBW, as well as barrister Elizabeth George and solicitor Rosa Curling from Leigh Day & Co have agreed to act pro bono.
More information is available here.
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