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Compensatory Award

Key Points

  • Compensation for unfair dismissal is divided into basic and compensatory awards.
  • The compensatory award is to compensate an employee for the financial losses he or she has suffered as a result of being unfairly dismissed.
  • For dismissals from 6 April 2020-5 April 2021 the maximum compensatory award is the lower of £88,519 or 52 weeks’(gross) pay and from 6 April 2021it is the lower of £89,493or 52 weeks’(gross) pay
  • Brexit effect - unless otherwise stated, the position in relation to any EU legislation and decisions as set out in this card is as it was understood at the end of the transition period on 31st December 2020. For information on the status of EU decisions and legislation as of 31st December 2020 please see Statement on impact of Brexit on Emplaw Online content
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