Member

The Commons amendments in lieu returned to us for further consideration today, after being debated and scrutinised in both Houses last week, directly deliver the agreement reached between business representatives and trade unions. They will reduce the qualifying period for unfair dismissal protections from 24 months to six months, ensure that the qualifying period can be varied only by primary legislation, and remove the compensation cap for unfair dismissal claims. This will remove both the 52 weeks’ gross pay and the £118,223 cap. We have heard the House’s concerns around the compensatory cap, and it is important to reiterate what was said in the last debate: in practice, few awards get anywhere close to these caps, with a median average award for unfair dismissal being £6,746 in 2023-24. Employment tribunals will also continue to assess compensation based on evidence of specific losses when determining awards. Furthermore, as I mentioned in your Lordships’ House last week, the Government stand ready to continue working with businesses and other stakeholders as we implement this change. I was pleased to see this sentiment reciprocated in the letter to the Secretary of State from business representatives.