Where a successful claim is made for unfair dismissal, a tribunal can award compensation in the form of a basic award and a compensatory award. The basic award is calculated by taking into account the employee's age, how long they have worked for the employer and their salary, in the same way as a statutory redundancy payment. Salary is looked at in terms of a week's pay, which is subject to a maximum cap. The compensatory award is "such amount as the Tribunal considers just and equitable in all the circumstances having regard to the loss sustained by the complainant in consequence of the dismissal insofar as that loss is attributable to action taken by the employer", and is subject to a maximum cap.
Compensation Limit |
Current Figure |
From 6 April 2019 |
Maximum limit on a week's pay |
£508 |
£525 |
Maximum compensatory award for unfair dismissal |
£83,682 |
£86,444 |
Minimum basic award for certain unfair dismissals |
£6,203 |
£6,408 |
The increases are based on the September retail prices index. These new figures will apply to cases where the termination of employment occurs after 6 April 2019.