Employment Relationship

The government have published their response to consultation on ending the employment relationship and the cap on unfair dismissal awards:-

Businesses were generally supportive of the aim to facilitate the increased use of settlement agreements, and their concerns centred on seeking clarity and certainty about how the measure would work in practice, and guidance for successful use of the system. Trade unions expressed broad concern about the use of settlement agreements. They did, however, agree with businesses and legal representatives when identifying specific areas of potential complexity, and therefore where clear guidance will be critical.


Businesses supported the introduction of a pay based cap on the compensatory award for unfair dismissal, with some concerns being around employees bringing additional uncapped claims. Trade unions opposed changing the cap, though the majority of these respondents opposed the notion of any cap on compensation for unfair dismissal.”

No surprises there with the polarization of business/trade union views ………!