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Unfair dismissal payouts capped

Workers will face a cut in how much compensation they can win for unfair dismissal at employment tribunals. The Business Secretary Vince Cable is set to also announce he's dropping plans to make it easier to fire under-performing staff.

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BCC: 'employers will be encouraged' by proposals

Dr Adam Marshall, Director of Policy at the British Chambers of Commerce (BCC) has said "employers will be encouraged" by Business Secretary Vince Cable's proposed law changes.

Employers will be encouraged that the Government is taking steps to reduce the burden of the employment system and create a more flexible labour market. Dismissal is always a last resort, but is at times necessary to protect a business and other members of staff.

The fear of malicious tribunal claims and an unnecessarily antagonistic dismissal process has a chilling effect on employment.

We would urge the government to move swiftly from consultation to implementation on settlement agreements and lower tribunal awards, as these proposals will boost confidence when businesses on the ground can see them in action.

– British Chambers of Commerce (BCC) statement

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