What Employers Should Know
Members will be aware that one of the key provisions within the Employment Rights Bill was the introduction of day one unfair dismissal rights.
After disagreement between the House of Commons and House of Lords during the legislative process, amendments to the Bill have now been announced. Specifically, the plan to introduce day one unfair dismissal rights has been abandoned. Instead, the Bill will reduce the qualifying period to make an unfair dismissal claim from 2 years to 6 months.
In the same statement, the government announced that they intended to lift the compensation cap from unfair dismissal claims. It is currently capped at the lower of one years’ salary or £118,223. Whilst the government made this statement, no detail was provided.
The Legal & HR Team will await an updated draft of the Bill and further information about the removal of the compensation cap. Members will be updated as matters progress.
