The Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013
| Jurisdiction | UK Non-devolved |
| Citation | SI 2013/1949 |
2013 No. 1949
Terms And Conditions Of Employment
The Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013
Made 28th July 2013
Coming into force 29th July 2013
A draft of this Order was laid before Parliament in accordance with section 15(8) of the Enterprise and Regulatory Reform Act 20131and approved by a resolution of each House of Parliament.
The Secretary of State, in exercise of the powers conferred by section 15 of the Enterprise and Regulatory Reform Act 2013, makes the following Order:
Citation and commencement
1. This Order may be cited as the Unfair Dismissal (Variation of the Limit of Compensatory Award) Order 2013 and comes into force on the day after the date on which it is made.
Limit of compensatory award for unfair dismissal claim
2.—(1) Section 124 of the Employment Rights Act 19962is amended as follows.
(2) In subsection (1) for “£74,200” substitute “the amount specified in subsection (1ZA)”.
(3) After subsection (1) insert—
“1ZA The amount specified in this subsection is the lower of—
(a) £74,200, and
(b) 52 multiplied by a week’s pay3of the person concerned.”.
Consequential amendment
3. In section 226(3) of the Employment Rights Act 19964for “or 121” substitute “, 121 or 124”.
Transitional provision
4.—(1) Articles 2 and 3 do not have effect in any case where the effective date of termination is on or before the date on which this Order is made.
(2) In this article “effective date of termination” has the meaning given by section 97 of the Employment Rights Act 19965.
Jo Swinson
Parliamentary Under Secretary of State for Business, Innovation and Skills
Department for Business, Innovation and Skills
28th July 2013
EXPLANATORY NOTE
(This note is not part of the Order)
This Order amends the limit on the compensatory award for unfair dismissal claims by introducing an additional, alternative limit. In an unfair dismissal claim the limit on the compensatory award shall be the lower of a set amount (which is currently £74,200) and the product of 52 multiplied by a week’s pay of the employee concerned.
The transitional provision contained in this Order means that the additional, alternative limit for the compensatory award (of 52 weeks pay) will not apply in cases where the effective date of termination...
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