An attempt by a Tory MP to change the law so that employment tribunal payouts are capped at £50,000 has failed.
The current system, which allows unlimited amounts to be awarded in discrimination cases, has led to “farcical” amounts of compensation, Christopher Chope said.
But there is not much chance of the Christchurch MP’s Tribunal (Maximum Compensation Awards) Bill making any more progress after time ran out for a debate at its second reading.
Mr Chope said: “There are strict limits upon the amount of awards the tribunal can give in respect of claims for unfair dismissal arising from the ordinary employment law.
“But where the claim for unfair dismissal is based on discrimination then an unlimited amount of damages can be awarded.
“That is now leading to all sorts of farcical situations.”
As part of its review on employment law, the government is considering reducing compensation awards in discrimination cases, Home Office minister Damian Green said.
He added that in unfair dismissal cases, there is already a cap of £68,400.
Copyright © Press Association 2011
