New reduced cap on the compensatory award for unfair dismissal to the lower of £72,400 or 52 weeks pay is imminent.

29th July 2013 is the date we believe important changes in the rules of compensation for unfair dismissal will take effect

Compensation for loss of earnings is currently calculated primarily to compensate unfairly dismissed employees for the likely amount of time it will take them to obtain new employment.

From 29th July 2013, 52 weeks future loss of earnings will be the maximum period of time for which an Employment Tribunal can award compensation, or £72,400, whichever is the lower.

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Updates: For employers: Tribunals | Unfair and constructive dismissal | For employees: Tribunals | Unfair dismissal |

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