Limits on compensation

Employees who are unfairly dismissed can only pursue their claims using unfair dismissal law, according to a ruling from the House of Lords, the highest UK court.

At present there is a pst51,700 ceiling on the maximum compensation that can be awarded at tribunals. This means that there are occasions when employees are not fully compensated for their loss. The effect of the court ruling is to close the door to any additional breach of contract claim they might otherwise pursue related to the manner of the dismissal and its impact on their health and wellbeing.

Johnson v Unisys (2001) UKHL 13