Member

120U: Leave out subsection (3) and insert— “(3) In section 124 (limit of compensatory award etc.), for subsection (1ZA) substitute— “(1ZA) The amount specified in this subsection is £118,223. (1ZB) Within three months of the day on which the Employment Rights Act 2025 is passed, the Secretary of State must conduct an impact assessment of the change to the limit specified in subsection (1ZA) made by that Act in order to assess whether the limit specified in subsection (1ZA) is the appropriate amount. (1ZC) An impact assessment under subsection (1ZB) must consider the effect of the change to that limit on— (a) the ability of claimants to obtain fair compensation, (b) the operation and capacity of employment tribunals, (c) the willingness of parties to settle claims without recourse to a tribunal, and (d) public sector employers and public expenditure. (1ZD) An impact assessment under subsection (1ZB) must include a consultation with— (a) employers’ organisations, (b) trade unions, (c) organisations representing employment law practitioners, and (d) such other persons as the Secretary of State considers appropriate.””