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How much compensation could I get for unfair dismissal?

unfair dismissal how much compensation

If you are an employee who believes they have been unfairly dismissed by your employer then you may be entitled to compensation in the employment tribunal.

Unfair dismissal – the compensation is broken down as follows:

Basic award

This is calculated in the same way as a statutory redundancy payment. You can use the government calculator to calculate this.

The calculation is based on your age at the date of dismissal, gross weekly pay up to a maximum of £464 and complete years’ of service. The maximum that can be awarded is 30 weeks’ gross pay subject to the cap.

For example if you have are 25 at the date of dismissal, have been employed for 2.5 weeks and your weekly pay before tax is £500 the basic award would be: 2 x £464 = £928.

If you have already been paid a redundancy payment then this may cancel out any basic award due.

Compensatory award

Amount for the fact that you will have lost your employment rights and will need to build up 2 years’ service in new employment. This amount is likely to be around £450 to £900 regardless of your income.

Compensation for loss

of earnings until such time as you find a job with the same salary or stop looking for another job. The maximum you can claim is £76,574 or up to one year’s salary whichever is less. It is only possible to claim net pay i.e. the pay you took home after deductions for tax and national insurance. It will also be possible to claim for loss of bonuses and other benefits associated with employment.

Acas Uplift

If the tribunal finds that your employer has not followed the Acas code of practice they increase the compensation awarded by up to 25%. If they find you have not followed the code of practice this compensation could be reduced by up to 25%.

Code of practice can be found on Acas website .

NB – compensation could be reduced if you do not keep records of your job search, or if the tribunal think you have contributed to your dismissal or the dismissal would have been fair aside from a procedural error.

If you have been dismissed you may find our fact sheets on unfair dismissal helpful –

For further information about unfair dismissal please contact me on 01202 636210 or .

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