Compromise Agreements Ltd instigated a Judicial Review against the Government’s decision to introduce a statutory cap of 52 weeks' pay for unfair dismissal compensation, i.e. it is the lower of 52 weeks' gross pay or the statutory maximum cap in force at the time (currently £78,335). CA Ltd argued that: (i) older people are more likely to be out of work for more than a year and, but for the cap, would be entitled to recover more than a year's salary; (ii) as a result, older potential claimants will be put off from bringing a claim; and (iii) the cap is therefore indirectly age discriminatory. In May 2014, the High Court refused permission to proceed with the Judicial Review on the grounds of ‘undue delay’ because the application should have been brought sooner, but in any event, the Court decided there was no reasonable prospect of success. CA Ltd appealed and the Court of Appeal will hear the case on 19 May 2015.
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This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.