'Frankly bonkers' | Experts warn of 'seismic change' amid plans for unlimited unfair-dismissal compensation

Employment lawyers have voiced concern after reports that the Government is considering scrapping the cap on compensation for unfair dismissal claims. 

The current limit - one year’s pay or £118,223 (whichever is lower) - could be removed entirely, allowing successful claimants to seek unlimited financial awards. Combined with the proposed reduction of the qualifying period for unfair-dismissal rights from two years to six months, specialists say the change would dramatically raise employers’ exposure.