The government has launched a consultation on reducing the upper limit on compensation payments for unfair dismissal. But PwC has warned that the proposals risk increasing the number of discrimination and whistle-blowing claims.

Ed Stacey, partner at PwC Legal, commented:

β€œIt is likely that the combination of increased fees for launching claims and the proposed reduction in awards for unfair dismissal claims will lead to a reduction in some of the low merit and low value claims. However, there is a risk that it will also incite employees to bolt on claims that remain uncapped such as claims for discrimination or whistle-blowing.”