Two new bandings of unfair dismissal compensation are to be introduced. The current system dictates that unfair dismissal compensation reaches a maximum after five years of service with an award of 26 weeks’ pay.
From Friday 25 July, two additional bands will be available:
- Employees with more than 10, but less than 15 years of service, could be awarded up to 31 weeks’ pay
- Employees with 15 years or more service could be awarded up to 36 weeks’ pay
Bearing in mind that an unfair dismissal claim is usually accompanied by a claim for notice pay and holidays, unsuspecting employers could find themselves facing a claim of nearly a year’s salary!
Your LAW contact can guide you through a fair process when ending an employment contract – whether due to conduct, performance, or redundancy. We are here to ensure you get the right advice to stay compliant.
