Compensation


Compensation is awarded to recompense an employee for lost earnings in the event of having been unfairly dismissed by a company. The compensatory award is based on the tribunal’s assessment of lost earnings between the dismissal and the hearing, and the likely loss of future earnings including other benefits such as pension rights. Most unfair dismissal claims are subject to a maximum amount of compensation but a few claims can be unlimited, such as in the case of discrimination. Compensation limits are outlined in the table below. Compensation limits (from 1st April 2018)
Employment right Maximum award
Unfair dismissal Basic award Compensatory award Additional award Total maximum award   £15,240 £83,682 £13,208 – £26,416 (i.e. 26-52 weeks’ pay) £98,922
Redundancy pay £15,240
Discrimination No limit
Dismissal for union/employee representative or pension trustee reasons Basic award Compensatory award     £15,240 £83,682
Dismissal for health and safety reasons Basic award Compensatory award   £15,240 No limit
Dismissal for making a protected disclosure Basic award Compensatory award     £15,240 No limit
Guarantee pay £28 a day (maximum 1 working week in any period of 3 months)
Contract claims in a tribunal £25,000
Limits on a week’s pay = £525 (where applicable)
 

Suggested Resources