Unfair? Thomas Mansfield Sheds Light on Latest Trade Union Unfair Dismissal Awards Capping

CROYDON, ENGLAND, April 08, 2013

As part of the new employment law changes coming into effect this summer, the government has announced a cap on the amount that can be paid out in unfair dismissal awards. The current maximum is GBP74,200, but employment relations minister Jo Swinson said a 12-month cap would provide "greater certainty about the maximum liability that can be paid in an unfair dismissal claim." She added, "we are committed to finding ways to support both businesses and employees when a working relationship breaks down."

But Trade Unions have condemned the rules as 'punishing' the victims of ill-treatment and unfair dismissal. According to the TUC general secretary Frances O'Grady:

"Limiting the amount of compensation victims can get for unfair dismissal to one year's salary will let bad employers off lightly and deter victims from pursuing genuine claims."

Unite, Britain's biggest union with 1.5 million members, described the changes as "part of a joined-up attack on workers' rights on a scale not seen in decades." They accuse the government of turning workers into 'scapegoats' for the government's handling of the economy, described by Unite as 'disastrous.'

Thomas Mansfield, said the changes are likely to be controversial with employees and employers. A spokesperson for the firm continues:

The set limit in unfair dismissal cases has always been a problem for high-earning employees who do not get compensated for their losses. Such high-earning employees are likely to welcome the change as a years salary is likely to be much more than the current limit of GBP74,200. Those employees who will find it genuinely difficult to find new work for over a year, for example, pregnant employees and older employees who are still facing age discrimination, may not be fully compensated for their losses. It is possible we will see protests from anti-discrimination groups.

Meanwhile, businesses have broadly welcomed the move. Dr Adam Marshall of the British Chambers of Commerce said:

"The proposed cap will make employers more confident in recruiting and also in defending themselves, if accused of ending employment unfairly. However, given how few people earn GBP72,400, we question the merits of maintaining this damaging headline figure."

The government has also been criticized by the opposition over the proposals. Shadow business secretary Chuka Ummuna said the government should be 'making it easier to hire, not easier to fire', and that the new rules constituted an attack on employee rights.

In another measure being introduced this year, the government has opted to reform TUPE, the legislation designed to protect workers' rights on transferring to a new employer. A new assessment service for long-term sickness absence is also being launched, with the aim of reducing paid leave.

Founded in 2004, Thomas Mansfield LLP provides first class employment law advice to both employers and individuals. Full details of the services they provide can be found at www.thomasmansfield.com.

The firm has expanded rapidly over the past five years and now has 13 experienced solicitors, handpicked from top quality firms across the UK, all specialising in employment law.

Taking an innovative approach to client service, Thomas Mansfield LLP has introduced the Lawyers4work scheme, a new insurance backed product which helps employers protect against the risk of employment tribunal claims, as well as providing a range of unique multimedia and e-learning training solutions.

ThomasMansfield have achieved the Law Society's Lexcel accreditation scheme and recently won the Law Society's Excellence award for innovation.