The High Court has dismissed a request for a judicial review challenging the newly introduced cap of one year’s salary in compensation for unfair dismissal.
The cap came into force on 29 July last year under the Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013. Previously individuals could claim for three years’ salary to a maximum of £74,200 in compensation.
London employment firm Compromise Agreements sought the review on the cap this week.
Barrister Alex Monaco (pictured), founder of Compromise Agreements, said: ‘We are looking at options and looking at appealing it.’ He said the firm is seeking pro bono help from lawyers to fight the ruling.
Monaco said the cap on compensation will disproportionately affect older people, as they are most likely to receive more than a year’s salary in compensation due to difficulty in finding another job.
Trade union Unison is also challenging a High Court ruling in February rejecting a request for a judicial review of the government’s decision to introduce tribunal fees.
The number of employment tribunal claims has dropped sharply since the fees were introduced, with a 79% fall in the final quarter of last year compared with the same period in 2012.