Employees who are unfairly dismissed from work will have the chance to receive more compensation from February next year.
According to Recruiter, the government will be increasing the maximum amount of compensation by 5.1 per cent in 2009.
However, it is thought by EMW Picton Howell that the because of the recession, the number of compensation pay outs will be on the increase.
Jon Taylor, head of employment at the company, said: "A four-fold increase in the last ten years is quite a dramatic rise and the credit crunch looks set to really compound the problem for employers."
He also believes that employers are likely to face more unfair dismissal claims as more workers are being made redundant in the economic downturn.
In related news, Unite recently called for more action to be taken against employers who use the credit crunch as an excuse to lay off workers.
The trade union also wants the minimum redundancy pay to be increased, Channel Four reported.
Digg 
Delicious 
Reddit 
StumbleUpon 
Google 
Technorati 
Netvouz