Abolish "Polkey deductions" in compensation for unfair dismissal

Background

The “Polkey deduction” lets tribunals reduce compensation for unfair dismissal by estimating the chance an employee would have been dismissed even if a fair process had been followed. We think this undermines the statutory right to a fair procedure and rewards employers who bypass due process.

Additional details

We ask the Government to amend the Employment Rights Act 1996 so that, where dismissal is found procedurally unfair, compensation is not reduced on “it would have happened anyway” grounds. Employers should bear the consequences of failing to follow a fair process. We believe this reform would restore the protective purpose of unfair dismissal law, vastly improve workplace standards, and provide clear incentives for lawful, respectful and fair dismissals.

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