Unfair dismissal is the term used in UK labour law to describe an employer's action when terminating an employee contrary to local laws. An employee’s dismissal may generally be found to be unfair if the employer does not:
* have just cause
* follow the company’s formal disciplinary or dismissal process
Following is an overview of the new provisions:
Tribunal fees - If an employee issues a claim against his/her employer in the employment tribunal, the employee will be required to pay a fee ranging from £160- £950.
Pre-termination negotiations - The new law allows employers the right to enter into termination discussions with their staff at any time without fear of repercussion.
Reduced cap on awards for unfair dismissal – The maximum compensation awarded for routine unfair dismissal claims at an employment tribunal previously was £74,200. The new law offers an equivalent of 52 weeks' pay or £74,200, whichever is the lower.
The new employment law reforms are designed to reduce the burden on the tribunal system and allow employers greater freedom to engage in early exit discussions with their employees.
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