Reducing unfair dismissal compensation will punish victims, warns TUC

date: 17 January 2013

embargo: For immediate release

Limiting the amount of compensation employees can receive for unfair dismissal and reducing the protection for public sector workers transferred to the private sector will punish the victims of ill-treatment at work and let bad employers off the hook, says the TUC.

Commenting on new measures published today (Thursday) by the government, TUC General Secretary Frances O'Grady said: '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.

'People who have been unfairly dismissed have had their rights breached and deserve compensation that reflects their loss of earnings and length of service.

'This arbitrary 12-month cap fails to do that and ignores the fact that losing a job, particularly in today's harsh economic climate, is a major blow.

'The government has already made it harder for people to pursue unfair dismissal claims - by increasing the qualifying period from to two years and introducing fees for employment tribunals - now it wants to prevent people who've been wronged from getting fair compensation.

'Weakening the TUPE legislation which currently protects employees who are transferred from one employer to another - often from the public to the private sector - will make it easier for companies to employ staff on lower rates of pay and worse terms and conditions.'

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Alex Rossiter T: 020 7467 1337 M: 07887 572130 E: arossiter@tuc.org.uk