HC Deb 19 February 1981 vol 999 cc189-90W
Mr. Greville Janner

asked the Secretary of State for Employment with whom the consultations took place about whether the upper limit for the compensatory award for unfair dismissal should be increased; and whether anyone other than employers or their organisations expressed the view that the compensatory award should remain the same as it was in February 1980.

Mr. Waddington

Consultations took place in autumn 1980 with the following organisations:

  • Alliance of Small Firms and Self-Employed People Ltd.
  • The Association of British Chambers of Commerce
  • The Association of Independent Businesses
  • British Institute of Management
  • British Multiple Retailers Association
  • Commission for Racial Equality
  • Confederation of British Industry
  • Equal Opportunities Commission
  • Engineering Employers' Federation
  • Federation of Master Builders
  • The Federation of Medium and Small Employers
  • The Forum of Private Businesses
  • The Industrial Society
  • Institute of Directors
  • The Institute of Personnel Management
  • Local Authorities Conditions of Service Advisory Board
  • The Managerial Professional and Staff Liaison Group
  • The National Association of Head Teachers
  • The National Chamber of Trade
  • National Federation of Retail Newsagents
  • National Federation of Self-Employed, and Small Businesses Ltd.
  • The National Union of Small Shopkeepers in Great Britain
  • Retail Consortium
  • The Teesside Small Business Club
  • Trades Union Congress
  • The Union of Independent Businesses

The view that the compensatory award should remain the same as in February 1980 was confined to employers' organisations. The TUC. however, made no specific recommendation that the upper limit should be increased.

Mr. Greville Janner

asked the Secretary of State for Employment by how much he estimates that the compensatory award for unfair dismissal has diminished in true value since it was last increased in February 1980.

Mr. Waddington

On the basis of the movement in the retail price index from February 1980 to December 1980, the latest month for which a figure is available, the compensatory award for unfair dismissal, which is currently £6,250, has diminished in real terms by £608.

Mr. Greville Janner

asked the Secretary of State for Employment whether he will now arrange for unfair dismissal awards to be index linked.

Mr. Waddington

In the light of the present economic situation and the need to control inflation, the Government do not consider it appropriate to index awards automatically regardless of employers' ability to pay.

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