Employment Tribunal Compensation: How Awards Are Worked Out
The basic and compensatory award in unfair dismissal, the statutory cap and when it does not apply, injury to feelings in discrimination, and common adjustments.
Two parts in unfair dismissal
- Basic award.Calculated like statutory redundancy pay, from your age in each year, complete years of service (capped at 20), and a week’s pay (capped at the statutory limit).
- Compensatory award. For financial loss flowing from the dismissal — lost wages, pension, benefits, and the cost of finding new work — assessed on what is just and equitable.
The cap, and when it does not apply
For ordinary unfair dismissal, the compensatory award is capped at the lower of a fixed statutory limit or 52 weeks’ gross pay. The fixed limit changes each April, so always check the current figure before relying on a number.
The ordinary cap does not apply to:
- automatically unfair dismissals such as whistleblowing or health and safety;
- discrimination claims under the Equality Act 2010, which are uncapped and can include injury to feelings.
Injury to feelings (discrimination)
Discrimination compensation can include an award for injury to feelings, assessed using the Vento bands (lower, middle, and upper), which are reviewed periodically. This is separate from, and additional to, financial loss.
Common adjustments
- ACAS uplift or reduction: up to 25% for unreasonable failure to follow the ACAS Code.
- Polkey reduction: where a fair process might have led to dismissal anyway.
- Contributory fault: where your own conduct contributed to the dismissal.
- Failure to mitigate: if you did not take reasonable steps to find new work.
Putting your figures together
Compensation is proved with figures and evidence, not estimates. The document that sets this out is a schedule of loss — earnings, benefits, pension, mitigation, and any basic or injury-to-feelings element.
How TribunalKit supports this draft
TribunalKit asks structured questions about your earnings, benefits, and losses, and produces a source-linked draft you can use as the basis of a schedule of loss. It does not calculate your award for you or give legal advice; you check the figures before use.
Product page: TribunalKit claim builders.
FAQ
How is unfair dismissal compensation calculated?+
It usually has two parts: a basic award, calculated like statutory redundancy pay from age, service, and a week's pay, and a compensatory award for financial loss such as lost earnings and benefits.
Is there a cap on compensation?+
The compensatory award for ordinary unfair dismissal is capped at the lower of a fixed statutory limit or 52 weeks' gross pay. The fixed limit is updated each year, so check the current figure. Some claims are not capped.
Which claims are not capped?+
The compensatory award is not subject to the ordinary cap for automatically unfair dismissals such as whistleblowing or health and safety, and discrimination compensation under the Equality Act is not capped and can include injury to feelings.
What is injury to feelings?+
In discrimination claims, tribunals can award compensation for injury to feelings using the Vento bands, which are updated periodically. This is separate from financial loss.
Can TribunalKit calculate my award?+
No. TribunalKit organises a draft from your own figures. It does not calculate your award, assess merits, or give legal advice. A schedule of loss is where you set out your own figures.