Comments are closed. Lawyers are warning organisations that rises in the levels of compensationpayments that can be awarded for breaches of employment law could cost UKbusinesses £20m for unfair dismissal cases alone. The total amount that can be awarded to individuals at employment tribunalshas risen in several types of case, but the bill for unfair dismissal couldrise by more than £500,000 during 2004 and 2005. Associa Employment Service has warned that the increases could hit the UK’ssmaller firms the hardest. Mark Thompson, legal team leader at the firm, saidthe increases in the upper limit for statutory redundancy and unfair dismissalcould prove costly for employers. “Small businesses face a challenging year dealing with employment lawchanges. These increases will be another unwelcome cost for many employers. “New anti-discrimination legislation introduced at the end of last yearcould leave businesses facing an increase in claims in addition to the unfairdismissal compensation bill,” he said. The changes, which took effect at the beginning of February, raised themaximum compensation for unfair dismissal from £53,500 to £55,000. Other awards affected by the increases include the figure used to calculatea week’s pay and the amount of compensation given when an individual isexcluded or expelled from a union. Breaches of law costs hitting hardOn 1 Mar 2004 in Personnel Today Previous Article Next Article Related posts:No related photos.