Unfair dismissal compensation cap is removed

Implementation date: To be confirmed

The Employment Rights Bill is being amended to remove the limit on the compensatory award in unfair dismissal claims. The current maximum compensatory award for unfair dismissal is £118,223 (from 6 April 2025), or 52 times the claimant's weekly pay if this is lower than £118,223.

It is not yet known when this change will be implemented.