Compensation for Unfair Dismissal - Introduction

1. Reinstatement

This is where an Employment Tribunal will place an employee back in their old job and pay compensation for the loss of wages for the time out of the job. Also, see Additional Award

2. Re-engagement
The employee returns to a similar job with the employer. Also, see Additional Award

It is very rare for either of these to be ordered by an Employment Tribunal. The reason for this is that they are reluctant to force an employer to take an employee back.

3. Compensation
This is what usually happens if the employee wins their case.
This is split into the Basic Award and the Compensatory Award.

The maximum an employee can be awarded in compensation for unfair dismissal is £93,332 - the maximum amounts under the Basic Award and Compensatory Award combined.

Capped
However, it is important to note that the Compensatory Award is also capped at an employee's yearly salary - please see Compensatory Award.

When awarding compensation for unfair dismissal, the tribunal will also take into account whether the applicant tried to resolve the dispute by using the employer's appeal procedures, before making an application to the tribunal.
 

Basic Award | Unfair Dismissal

Employment Law

 

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