Compensation for unfair dismissal claims to be limited

The news story that most caught our eye this week was the extraordinary tale of a software developer who outsourced his own job to a company in China.
The employee spent his time at work perusing the joys of YouTube and eBay whilst paying just one fifth of his six-figure salary to a Chinese company.

Unsurprisingly, the software developer has lost his job – possibly the most original reason for dismissal we are yet to come across. But with an employee that inventive, we wonder if the employee will attempt to claim compensation for unfair dismissal…

However, there is good news for employers in unfair dismissal claims. The government has confirmed that from this summer, the maximum compensatory award for a successful unfair dismissal claim will be the equivalent of one year’s salary – and that will be subject to a cap of £72,400 in February. The lower of the two amounts will apply, so if an employee earns £30,000 per year, the maximum potential of the award will be £30,000; if he earns £40,000, the maximum will be £40,000 – and so on.

So, good news for employers facing errant employees, no matter how resourceful those employees may be!

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