Unlimited unfair dismissal payouts
Ben Smith of the firm Littler predicts that the change will make some dismissals — particularly of high earners — more complex and expensive, which, he says, may lead to a “reduced appetite to resolve disputes before litigation if claim numbers increase significantly or employee expectations become unrealistic”.
But he suggests: “The silver lining may be that disputes become more focused, with less incentive for employees to include weak discrimination or whistleblowing claims to get around the unfair dismissal compensation cap.”
The restrictions on non-disclosure agreements, Smith suggests, may lead employers to contest harassment and discrimination claims more vigorously to guard against reputational risks, adding that employees may be the ones pushing for settlements in such circumstances.
