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Tribunal payout cut to be announced

14 September 2012 Last updated at 19:48 BST

The maximum compensation workers can win for unfair dismissal will be cut, in proposals announced by the government today.

Business Secretary Vince Cable has also announced the use of settlement agreements, where staff agree to leave with a pay-off but no option of a tribunal.

But proposals to make it easier to fire under-performing staff will not be made law.

Hugh Pym reports.