Ben Smith, associate at employment firm Littler, said: “Removing the caps entirely also makes it more difficult for unfair dismissal claims to be resolved without litigation, if potential claimants have unrealistic expectations of compensation the tribunal might award.”
“If the cap is removed entirely and the reduction of the qualifying period to six months, dismissals will be more complex and potentially more expensive for employers. This is particularly the case for high earners who will now have more motivation to pursue unfair dismissal claims if there are significant amounts of lost salary or bonuses on the line. An influx in such high-value claims would only add to tribunal backlogs.”