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Managing the dismissal process and minimising the costs of unfair dismissal claims
A package of measures aimed at reducing the number of workplace disputes that end up at employment tribunal has been set out recently by the Government.

It plans to limit payouts to employees in cases of unfair dismissal to a cap of 12 months' pay of the employee in question. This will apply where this amount is less than the overall cap, which is currently £72,300 (rising to £74,200 in February.)

The introduction and implementation of a new statutory code and guidance to encourage greater use of settlement agreements, along with setting a limit on unfair dismissal payments, are the next steps in the Government's response to the 'Ending the Employment Relationship' consultation.

The government also confirmed last week that Acas had been asked to draw up the documentation to include template letters to encourage the use of the new settlement agreements, alongside a statutory code of practice which will include an explanation of improper behaviour. However, there will be no set ‘tariff’ guidance to govern actual financial settlements.

The timetable for the new measures is not yet clear and is subject to Parliamentary approval, but it is understood that the Government is hoping to introduce them this summer.
Posted on 19 Nov 2016


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