Outcome
Individual claims
The claimant succeeded in his unfair dismissal claim at a previous hearing. This reconsideration judgment addresses only the remedy awarded, specifically that the compensatory award exceeded the statutory cap of 52 weeks' pay.
Facts
This is a reconsideration application by the respondent following a remedy hearing in an unfair dismissal claim. The respondent argues that the tribunal failed to apply the statutory cap on the compensatory award as required by section 124 ERA 1996. The claimant's annual gross salary was £24,600, meaning the compensatory award should be capped at 52 weeks' pay (£24,600) rather than exceeding this amount.
Decision
Employment Judge Boyes found there were reasonable prospects that the reconsideration application would succeed because the compensatory award appeared to exceed 52 weeks' pay and no exceptions to the statutory cap appeared to apply. The judge directed that the claimant be given an opportunity to respond and the parties' views be sought on whether the matter could be decided without a hearing.
Practical note
Tribunals must remember to apply the statutory cap to compensatory awards in unfair dismissal cases, which is the lower of £93,878 or 52 weeks' pay, unless specific exceptions apply.
Legal authorities cited
Statutes
Case details
- Case number
- 3304233/2023
- Decision date
- 3 April 2025
- Hearing type
- reconsideration
- Hearing days
- —
- Classification
- procedural
Respondent
- Name
- R.H. Claydon Ltd
- Sector
- —
- Represented
- No
Employment details
- Salary band
- £20,000–£25,000
Claimant representation
- Represented
- No