Judicial Review challenge to unfair dismissal compensatory award cap

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A London employment law firm has launched a judicial review challenge to the introduction of the cap on the unfair dismissal compensatory award (the lower of £74,200 or one year’s gross pay). The firm argues that the cap, introduced in July 2013, indirectly discriminates against older workers who are more likely to be out of work for more than one year and, therefore, are more likely to be entitled to more compensation than their younger counterparts. It also argues that the cap indirectly discriminates in relation to access to justice because older workers are likely to be discouraged from bringing unfair dismissal claims. We will report on developments in due course.