Type of award

  • Basic: £13,920 (max) from 6 April 2914
  • Compensatory: From 6 April 2014, the lower of £76,574 02 52 weeks’ pay
  • Additional: between 26 and 52 weeks’ pay
  • Week’s pay for unfair dismissal purposes: £464 from 6 April 2014
  • Guarantee pay: £25.00 per day from 6 April 2014

Unfair dismissal compensation has up to three elements – basic, compensatory and additional. The basic award is based on age and length of service. The compensatory award has four elements – estimated loss of pay at the time of the hearing, estimated future loss of pay, loss of benefits and rights, loss of statutory rights. An additional award is made where the employer refuses to obey an order to reinstate or re-engage an employee without good reason.

Guarantee pay is due for any day on which the employee is required to work but for which no work is provided. For example, it’s payable when you lay off an employee or put them on short-time working (if you have to contractual right to do so).

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