Award Changes Expected In February

Companies have been warned by an employment lawyer at Irwin Mitchell that changes to the maximum amount which can be awarded in unfair dismissal cases could have a significant financial impact on their bottom line if they fail to adhere to legislation.

The government has confirmed that, from the start of February next year, the maximum compensatory award for unfair dismissal is to rise from its current level of £65,300 to £68,400.

In addition, further adjustments to the top level available for a week’s pay means that the overall maximum unfair dismissal award available in some cases could reach £80,400.

Glenn Hayes, a Leeds-based Partner in Irwin Mitchell’s Employment Law team, said: “While the maximum award available in unfair dismissals usually increases annually, this latest planned rise will see the figure reach sums that could seriously impact on the future of some businesses.

“Because of this, it is vital that all companies make every effort to ensure they act reasonably when dismissing an employee and follow the ACAS Code of Practice and their own policies to avoid legitimate claims.”