Update on Unfair Dismissal

United Kingdom
01/06/1999
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Pursuant to the Unfair Dismissal and Statement of Reasons for Dismissal (Variation of Qualifying Period) Order 1999, the qualifying period for unfair dismissal claims has been reduced from 2 years to 12 months for all claims made by employees whose effective date of termination falls on or after 1st June 1999. In addition, the compensation cap of £12,000 is to be increased later in the year to £50,000.

This change will have an impact on all claims for unfair dismissal regardless of the reason for the dismissal. This is particularly relevant for insolvency practitioners who choose to dismiss employees and especially where employees are dismissed prior to a TUPE transfer where the dismissal is deemed to be automatically unfair unless the contrary can be proved. The change in qualifying period means that insolvency practitioners could be open to a greater number of claims from employees who previously did not qualify. Insolvency practitioners should be mindful of the change and in particular alert to the increase in the cap which is scheduled to change later in the year and could result in greater compensation pay outs.

For further details please see the employment page of Law Now.

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