When is an additional award payable?

Reinstatement and reengagement orders are occasionally made by Employment Tribunals in unfair dismissal cases. If an employer ignores either of these orders the employee will be entitled to an "additional award" as well as compensatory award unless the employer can satisfy the employment tribunal that it was not practicable to comply with the order (ERA 1996 s.117(3) and s.117(4)).

As its name suggests, additional award is in addition to any other award of compensation for unfair dismissal (normally basic award and compensatory award).

How is the additional award calculated?

Provided the effective date of termination (''edt'') is on or after 25 October 1999 the additional award is not less than 26 times, nor more than 52 times, a week's pay (ERA 1996 s.117(3)(b)).

The amount of a week's pay which can be taken into account for this purpose is subject to a statutory limit as applicable on the appropriate date (ERA 1996 s.227(1)(b)). "Appropriate date" for this purpose means the date by which the order of reinstatement specified under ERA 1996 s.114(2)(c) or of re-engagement specified under ERA 1996 s.114(2)(c) should have been complied with.

The statutory limit is generally adjusted on 1st February in each year line with RPI at the previous September. However given the fall in RPI in the year to September 2009 and the one-off increase in the limit on a week's pay from 1st October 2009 there was no index linking of a week's pay in February 2010 (see Compensation/indexation and for the current statutory limit from time to time see notes on week's pay).

See also notes at Unfair dismissal/reinstatement and reengagement orders/compensation for breach of order by employer .