Cheaper to Dismiss?

August 01, 2013

Legislation came into force in the UK on 29 July 2013, limiting the amount an employee can receive by way of compensation for unfair dismissal to the lower of £74,200 or 52 weeks’ gross pay. A week’s pay is calculated in accordance with statute but where an employee’s pay varies depending upon the hours worked or the amount of work done, then the figure is calculated over a 12 week reference period. The change in compensation will only affect employees whose effective date of termination (determined by statute) is on or after 29 July 2013

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