Report comment

One thing that has not been mentioned is the current proposed change to the taxation of awards. The £30,000 tax free limit is to go replaced by a £6,000 amount after 2 years, rising by £1,000 per year of service. The year cap on unfair dismissal is a gross one which means someone on £20,000 could recover as a maximum as little as £14,000 (forgive the rough tax figures), less than a years net salary. It puts us back to the limits in effect before 2000, for those of us that were in practice then. Add this to the pitiful recovery statistics for ET claims and costs and unfair dismissal claims become an utter waste of time for the majority.

As you say James, the Beecroft's recommendations will then be fully in effect by the back door. Welcome to employment at will!