Overview

This bill, if passed, would set a £50,000 cap on compensation awards in employment tribunals for unfair dismissal and discrimination cases. This limit would apply across the UK and override any conflicting European Union law.

Description

The Tribunals (Maximum Compensation Awards) Bill aims to introduce a maximum limit of £50,000 on all compensation awards given by employment tribunals in cases involving unfair dismissal or discrimination. This cap applies to compensatory awards only.

Key Features:

• Compensation Limit: A maximum of £50,000 will be awarded in all cases.
• Scope: Covers unfair dismissal and discrimination claims arising from employment.
• Legal Override: The bill explicitly states it will take precedence over the European Communities Act 1972, indicating an intention to supersede relevant EU legislation.
• Enforcement: The bill will be enforced by UK courts.
• Commencement: The act comes into force two months after it is passed.
• Geographical Extent: The act applies to the whole of the United Kingdom.

Government Spending

The bill is expected to reduce government spending on compensation payments to successful employment tribunal claimants. The exact amount is difficult to predict without detailed analysis of current compensation levels in such cases, but it will result in savings.

Groups Affected

This bill is expected to significantly impact several groups:

• Employees: Those who successfully sue for unfair dismissal or discrimination could receive significantly less compensation than they might otherwise be awarded.
• Employers: Employers facing employment tribunal claims may see their potential liability reduced.
• Employment Tribunals: The workload of employment tribunals may be affected, depending on the number and types of cases brought.
• Lawyers: Legal professionals specializing in employment law may experience reduced income from tribunal cases.

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