Home / Insights / Blog / MP loses compensation cap bid

MP loses compensation cap bid

MP loses compensation cap bid

MPs have not passed a Bill which would have imposed a £50,000 limit on compensation awards made by employment tribunals.

Christopher Chope, Conservative MP for Christchurch, had proposed a change in the law to cap compensation.

He claimed the current system, which allows unlimited awards in cases involving discrimination, had led to "farcical" payouts.

But during its second reading in the Commons, his Tribunal (Maximum Compensation Awards) Bill ran out of time for debate, suggesting it is unlikely it will make further progress.

But under a review of employment law the Government is giving "active consideration" to slashing compensation paid over discrimination cases, according to Home Office minister Damian Green.

Mr Chope said: "There are strict limits upon the amount of awards the tribunal can give in respect of claims for unfair dismissal arising from the ordinary employment law.

"But where the claim for unfair dismissal is based on discrimination then an unlimited amount of damages can be awarded.

"That is now leading to all sorts of farcical situations."

Mr Green said there was currently a £68,400 limit on cases of unfair dismissal.

Our Employment team provides advice on the employment aspects of all major business decisions. For advice, contact a member of the team, call us on 08456 381 381 or email enquiries@ibblaw.co.uk.