In response to this reduction, Compromise Agreements Limited, a law firm that represents claimants, has applied for permission from the High Court to apply for a judicial review on the basis that the amended cap ‘represents a disproportionate response to the concerns of the Secretary of State to limit compensation awards to employees who have been unfairly dismissed.’
The firm argues that the new cap of one year’s pay will disproportionately impact on those who are likely to be out of work for more than a year following an unfair dismissal. They believe that, as older workers are more likely to fall into this category than younger workers, the new cap unlawfully discriminates against older workers because, were it not for the new cap, they would be eligible for more than a year’s compensation.
In addition, the firm argues that the financial burden for supporting claimants who are out of work for more than a year will fall on the public purse in the form of benefits, whereas it should fall on the employer responsible for the unfair dismissal, as was previously the case.
If the High Court decides to refuse permission to apply for a judicial review, Compromise Agreements Limited has indicated that it will apply for an oral hearing for a reconsideration of the decision.
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