Claims period for unfair dismissal ‘could increase’

Posted 04/11/2010

A government official has stated that the claims period for unfair dismissal cases could be set to rise.

Currently employees can take legal action for unfair dismissal when they have been in their post for a year, but Lord Young said on BBC Radio 4 this week that the coalition is considering making it two years, the same timespan it was in 1999.

“Back in the 1980s when we did that, the result was that employment starting shooting up again. I want to find out what small business people themselves think about this and then we’ll think about it,” he commented.

Should the change be agreed upon, it could come into effect as early as April 2011.

However, Trades Union Congress general secretary Brendan Barber criticised the plans, insisting there is no evidence that it would create new jobs.

Currently, unfair dismissal compensation is capped at £65,300.

However, it was speculated in June that this could rise after a landmark case which saw a surgeon win his case against the NHS.

Michael Edwards successfully argued that it did not follow proper procedures when removing him from his position, meaning he should be eligible for a substantial sum in compensation.