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GLOSSARY

Basic award definition

Published by a LexisNexis Employment expert

What does Basic award mean?

An award of compensation made by an employment tribunal.

This is awarded by an Employment Tribunal to a successful employee at an Employment Tribunal Hearing. The Basic Award is calculated on an employee's length of service and age and is capped at a maximum figure.

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The basic award

This Practice Notes examines the basic award, which is one component of an award of compensation in an unfair dismissal claim.For guidance on remedies for unfair dismissal generally, see Practice Note: Unfair dismissal remedies—general.Preliminary considerationsAs a starting point, the provisions of section 112 of the Employment Rights Act 1996 (ERA 1996), which sets out the remedies for a successful unfair dismissal claim, are mandatory. This means that in every case where a dismissal is found to be unfair, the employment tribunal must explain reinstatement and re-engagement and ask the employee if they want such an order to be made. The tribunal should ask this of the claimant whatever they have said in the claim form. It is only if they do express such a wish that an order can be made. If the employee says that they are interested in reinstatement or re-engagement, then the tribunal must consider the issues of practicability and the employee's conduct when deciding upon the remedy. For further guidance, see Practice Notes: Reinstatement and Re-engagement.The...

Calculating a week's pay

Calculating a week's pay The concept of ‘a week’s pay’, calculated in accordance with sections 220–229 of the Employment Rights Act 1996 (ERA 1996), is important for a number of statutory employment rights, including: • the statutory right to pay during a notice period—see Practice Note: Statutory minimum notice—Employee rights during the notice period • calculation of the basic award or an additional award for failure to comply with an order for reinstatement or re-engagement in unfair dismissal cases—see Practice Notes: The basic award—Calculation, Reinstatement—Second stage reinstatement hearing—compensation and additional award and Re-engagement—Second stage reinstatement hearing—compensation and additional award • calculation of the statutory maximum compensatory award for unfair dismissal (although not for assessing the amount of the compensatory award itself—see Practice Note: The unfair dismissal compensatory award—Applying the statutory cap • calculation of a statutory redundancy payment—see Practice Note: Entitlement to statutory redundancy payment—How the payment is calculated • calculation of an award for failure to provide written reasons for dismissal—see Practice Note: Written statement of...

Discover our 6 Practice Notes on Basic award

ET1 Claim—disability discrimination (direct discrimination, indirect discrimination, discrimination arising from disability and failure to make reasonable adjustments), harassment, victimisation and unfair dismissal (ill-health capability)

ET1 Claim—disability discrimination (direct discrimination, indirect discrimination, discrimination arising from disability and failure to make reasonable adjustments), harassment, victimisation and unfair dismissal (ill-health capability) [Insert in para 8.2 of claim form ET1:] 1 The Claimant was employed by the Respondent as a [insert job title, eg ‘paralegal and then as a trainee solicitor’] from [insert start date of employment, eg 6 September 2021] until [his OR her OR their OR dismissal on [insert date, eg 31 March 2024]. The Respondent is [insert brief description of the nature of the Respondent, eg ‘an international law firm’.]. 2 [The Claimant claims that the Respondent subjected [her OR him OR them] to [a course of ]discrimination, harassment and victimisation which included his OR her OR their] discriminatory and unfair dismissal.] Disability 3 The Claimant has [insert details, eg ‘clinical depression and severe dyslexia’] and was at all relevant times a disabled person [by reason of each of these impairments] for the purposes of...

Claimant’s schedule of loss—unfair dismissal

Claimant’s schedule of loss—unfair dismissal In the employment tribunals Case no: [Insert case number] Between: [insert name of claimant] Claimant and [insert name of respondent] Respondent Claimant's schedule of loss 1. Details Net weekly basic pay: £[insert amount] Contractual notice period: [insert number] [weeks OR month[s] ] Statutory notice period: [insert number] week[s] Claimant's date of birth: [insert date] Period of service: [insert date] to [insert date] Complete years of continuous service: [insert number] year[s] Age at effective date of termination (EDT): [insert number] years Gross weekly pay: £[insert amount] Statutory cap of a week’s pay at the EDT: £[insert amount] 2. Basic award [insert relevant multiplier] X £[insert amount of week’s pay (subject to statutory maximum)]: Basic award: £[insert amount] Less Amount received as statutory redundancy pay: £[insert amount] Total basic award: £[insert amount] 3. Compensatory award Loss to date of tribunal hearing 3.1 Loss of basic salary to date of tribunal ([insert number of weeks...

Dive into our 4 Precedents related to Basic award

119 Basic award

(1) Subject to the provisions of this section, sections 120 to 122 and section 126, the amount of the basic award shall be calculated by—(a) determining the period, ending with the effective date of termination, during which the employee has been continuously employed,(b) reckoning backwards from the end of that period the number of years of employment falling within that period, and (c) allowing the appropriate amount for each of those years of employment.(2) In subsection (1)(c) “the appropriate amount” means—(a) one and a half weeks' pay for a year of employment in which

120 Basic award: minimum in certain cases

(1) The amount of the basic award (before any reduction under section 122) shall not be less than [£6,634] where the reason (or, if more than one, the principal reason)—(a) in a redundancy case, for selecting the employee for dismissal, or(b) otherwise, for the dismissal,is one of those specified in section 100(1)(a) and (b), [101A(d),] 102(1) or 103.[(1A) . . .(1B) . . .][(1C) Where an employee is regarded as unfairly dismissed by virtue of section 104F (blacklists) (whether or not the dismissal is unfair or regarded as unfair for any other reason), the amount

Basic award is referenced 4 in UK Parliament Acts