Unfair dismissal award maximum ‘to fall’

Employment tribunals are set to be able to award less to individuals who win unfair dismissal cases against their former employees, as the maximum amount falls in line with the retail price index, it has been reported.

This will see the maximum award falling to £65,300 from £66,200, reflecting the 1.4 per cent decline noted in the retail price index between September 2008 and 2009.

Under section 34 of the Employment Relations Act 1999, the secretary of state is required to alter the limits of such compensation if the index is either higher or lower than the previous September.

Contact Law recently revealed that during the first nine months of 2009, there was a 77 per cent increase in demand for employment law professionals, but in November, a 7.4 per cent decline was recorded, City AM reported.

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The figures suggest that this demonstrates a fall in the number of employment tribunals over unfair dismissal claims being sought, according to the group.