Unfair Dismissal: Compensation

(asked on 15th December 2025) - View Source

Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the cost to the a) private sector and b) public sector of abolishing the caps on unfair dismissal compensation claims.


Answered by
Kate Dearden Portrait
Kate Dearden
Parliamentary Under Secretary of State (Department for Business and Trade)
This question was answered on 18th December 2025

The Government will be publishing an Enactment Impact Assessment on the impacts of the Employment Rights Act. This will include an assessment of the removal of the compensation cap for unfair dismissal on different sectors. This assessment can be found here when published: Employment Rights Bill: impact assessments - GOV.UK.

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