Overview

This bill, the Tribunals (Maximum Compensation Awards) Bill, proposes to set a £50,000 cap on compensation awards in employment tribunals for unfair dismissal and discrimination cases. It aims to limit the amount employers can be required to pay in such cases.

Description

The bill introduces a single, overarching limit of £50,000 on all compensatory awards for unfair dismissal or discrimination claims arising from employment. This applies regardless of the specifics of the case or the severity of the discrimination.

Key aspects:

• Compensation Cap: A maximum compensation award of £50,000 for all employment tribunal cases involving unfair dismissal or discrimination.
• Applicability: The act explicitly states it applies across the UK and overrides any conflicting aspects of the European Communities Act 1972.
• Commencement: The act comes into force two months after it receives Royal Assent.

Government Spending

The bill is expected to reduce government spending by limiting payouts in employment tribunal cases. The precise amount saved is uncertain but would depend on the number and value of awards exceeding £50,000 that are currently made.

Groups Affected

This legislation will impact several groups:

• Employees: Employees bringing claims for unfair dismissal or discrimination may receive less compensation than they would have under previous legislation.
• Employers: Employers will face a reduced maximum liability for employment tribunal claims, potentially lowering their insurance costs.
• Employment Tribunals: The workload of employment tribunals may change, although the precise impact is difficult to predict.

Powered by nyModel