Unfair Dismissal awards at the Employment Tribunals consist of two elements; the basic award and the compensatory award.
The basic award is based on length of service, age and wage. It is calculated in the same way as a redundancy payment. The current maximum basic award is £19,290.00.
The compensatory award is a loss of earnings claim based upon how long it takes you to find another job. It is subject to a cap of 12 months earnings up to a maximum of £105,707 (increased from £98,878 in 2023).
The Claimant has to “mitigate their loss” which means actively trying to find another job. In the Employment Tribunal a Claimant would have to demonstrate what they have done to find another job.
If the Claimant found another job immediately after being dismissed they would not have any financial losses.
