A Private Members Bill that proposes to introduce a cap on the amount of compensation awarded to successful discrimination claimants had its second reading recently in Parliament. Compensation awards in discrimination claims are currently uncapped, which many business leaders feel has led to a ‘have a go’ compensation culture.
There is no qualifying period of service for employees who place a discrimination claim, which often leaves a discrimination claim the only possible option for those who feel they have been unfairly dismissed. Compensation for unfair dismissal is currently capped at £68,400 and employees need 1 year’s continuous service with an employers before they can place a claim, which leaves a discrimination claim not only an attractive option, but also the only option for many.
The chances of the Bill actually surviving the Parliamentary process are slim since it is likely to clash with the UK Directive on Equal Treatment. However, this is an indication that MPs are recognising that the fear of a discrimination claim is having a very real and negative effect on businesses in the UK.
STRIKES ARE IMMINENT
Unions have confirmed a national ‘day of action’ on 30th November, to be held in protest against Government proposals to increase the pension contributions of those working in the public sector. Unison, Unite, the Fire Brigades Union, and the GMB are balloting members with a view to taking co-ordinated action. Expected to be the biggest co-ordinated trade union action in a generation, the ‘day of action’ is expected to include strike action, rallies, and other similar events.
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