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GLOSSARY

Compensatory award definition

Published by a LexisNexis Employment expert

What does Compensatory 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 Compensatory award is capped at a maximum figure. It normally reflects the employee's future loss of earnings and benefits.

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Drafting checklist for claim or response—unfair dismissal: redundancy

Drafting checklist for claim or response—unfair dismissal: redundancy Both parties • Was the Claimant an employee? See Practice Notes: Entitlement to claim unfair dismissal—Eligibility and Employee status • Did the Claimant have requisite qualifying service, or does an exception apply? See Practice Note: Qualifying period for unfair dismissal • Has the Claimant complied with the requirement for early conciliation or does one of the exemptions apply? See Practice Note: The early conciliation requirement • Is the claim brought within the three-month time limit, or the period as extended if the requirement for early conciliation applies? See Practice Notes: Unfair dismissal time limit and The early conciliation requirement—Extension to time limits (the 'stop the clock' provisions) • Is the contract of employment arguably void for illegality? See Practice Note: Entitlement to claim unfair dismissal—Illegality • Does the Claimant fall within a category of employee excluded from unfair dismissal protection, eg police constables. See Practice Note: Entitlement to claim unfair dismissal—Particular types of employment • Was the Claimant’s work based in Great...

Drafting checklist for claim or response—whistleblowing and unfair dismissal

Drafting checklist for claim or response—whistleblowing and unfair dismissal Both parties • Was the Claimant an employee? See Entitlement to claim unfair dismissal—Eligibility and Employee status • Was the Claimant a worker? See Entitlement to claim whistleblowing—Included persons: the extended definition of 'worker' • Does the Claimant have the requisite qualifying service for an ordinary unfair dismissal claim? See Qualifying period for unfair dismissal • Has the Claimant complied with the requirement for early conciliation or does one of the exemptions apply? See The early conciliation requirement • Is the claim brought within the three-month time limit, or the period as extended if the requirement for early conciliation applies? See Unfair dismissal time limit and The early conciliation requirement—Extension to time limits (the 'stop the clock' provisions) • Is the contract of employment arguably void for illegality? See Entitlement to claim unfair dismissal—Illegality • Does the Claimant fall within a category of employee excluded from ordinary unfair dismissal protection, eg police constables? See Entitlement to claim unfair dismissal—Particular types of...

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The unfair dismissal compensatory award

An award of compensation for unfair dismissal generally consists of a basic award and a compensatory award. The compensatory award is intended to compensate the employee for financial losses suffered as a result of the unfair dismissal. It may be subject to various increases or deductions.The basic award is considered in Practice Note: The basic award. Note the remarks in that Practice Note about the obligation on the employment tribunal to first explain to the successful claimant the remedies of reinstatement and re-engagement.For guidance on unfair dismissal remedies generally, including reinstatement and re-engagement, see Practice Note: Unfair dismissal remedies—general.See also the Lexis+® UK online calculators:•basic award calculator, and•unfair dismissal schedule of loss application (and the related Practice Note: Guide to using the Lexis+® UK Employment Schedule of Loss application)The essential steps for calculating the compensatory awardThe basic approach, as set out by the Court of Appeal in Digital Equipment v Clements (No 2) is set out below.Step (1): Calculate loss sustainedCalculate the loss that the employee has sustained in consequence...

Compensation limits in employment claims

This Practice Note contains a number of tables setting out the statutory limits on compensation (with the appropriate calculation) for all types of employment tribunal claim, plus any applicable qualification period of continuous employment.This Practice Note also sets out the current maximum week’s pay and compensatory award, minimum basic award (eg for trade union, health and safety, working time representative, pension scheme trustee and employee representative dismissals and others) and the maximum guarantee payment per day. The tables contain links to all relevant legislation and Practice Note materials.The limits in these tables are listed by topic, for example, discrimination, whistleblowing, unfair dismissal. Click on the links in the Table of Contents to navigate to the relevant topic.The annual indexation of limits for a week's pay, guarantee payments, maximum compensation for tribunal claims etc takes effect from 6 April each year.The tables set out, where relevant, the applicable rates relating to two preceding years, namely:•6 April 2023 to 5 April 2024•6 April 2022 to 5 April 2023as well as the current...

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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...

List of issues to be determined

List of issues to be determined In the employment tribunals Case no: [Insert case number] Between: [insert name of claimant] Claimant and [insert name of respondent] Respondent ____________________________ LIST OF ISSUES ___________________________ Equality Act 2010 claims—jurisdictional Issues Time limits 1 Have the Claimant's claims of [insert details of type of claim, eg disability] discrimination been brought within three months of the acts complained of, taking into account the effect of the ‘stop the clock’ provisions in respect of early conciliation? (EqA 2010, ss 123(1)(a) and 140B)) 2 In respect of the Claimant’s complaints which are based on the Respondent’s failure to do something, namely [insert details of complaints based on omissions], when is the Respondent to be treated as having decided those things? (EqA 2010, s 123(4)) 3 In respect of any complaints which are out of time, do they form part of a continuing act, taken together with acts which are in time? (EqA 2010, s 123(3)(a)) 4 If the complaints were not submitted in time, would it...

Dive into our 3 Precedents related to Compensatory award

How is compensation assessed when an employee is found to have been unfairly dismissed for redundancy because of her pregnancy?

How is compensation assessed when an employee is found to have been unfairly dismissed for redundancy because of her pregnancy? An employee will be regarded as unfairly dismissed for the purposes of Part X of the Employment Rights Act 1996 (ERA 1996) if (among other things): • the reason or principal reason for dismissal is one of a number of specified reasons relating to pregnancy and maternity leave • she was dismissed for redundancy and the provisions entitling her to suitable alternative employment were not complied with • she was dismissed for redundancy and: ◦ one or more other employees, in similar positions to the employee, were equally at risk of redundancy but were not dismissed, and ◦ the reason or principal reason for dismissal was one of a number of specified reasons relating to pregnancy and maternity leave For further information, see Practice Note: Detriment or dismissal on grounds of pregnancy, childbirth or maternity leave—Protection against dismissal. Generally, an award of compensation for unfair dismissal can...

What principles apply when assessing loss of earnings in an unfair dismissal claim where the claimant has taken temporary employment at a salary higher than he had before?

What principles apply when assessing loss of earnings in an unfair dismissal claim where the claimant has taken temporary employment at a salary higher than he had before? Generally, an award of compensation for unfair dismissal can consist of: • a basic award • a compensatory award • an additional award (where an order for reinstatement or re-engagement is not complied with) The compensatory award is such amount as the tribunal considers just and equitable in all the circumstances having regard to the loss sustained by the employee as a result of dismissal and in so far as that loss is attributable to actions of the employer. It is intended to compensate the employee rather than to punish the employer. No account should be taken of any period during which losses are caused by something other than the dismissal. The compensatory award is generally subject to a statutory maximum. It follows that the starting point in assessing compensation for loss of earnings for unfair dismissal is:...

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118 General

(1) [. . .] Where a tribunal makes an award of compensation for unfair dismissal under section 112(4) or 117(3)(a) the award shall consist of—(a) a basic award (calculated in accordance with sections 119 to 122 and 126), and(b) a compensatory award (calculated in accordance with sections 123, 124, [. . .][124A and 126]).(2) . . .(3) . . .[(4) . . .]

123 Compensatory award

(1) Subject to the provisions of this section and sections 124[, 124A and 126], the amount of the compensatory award shall be such amount as the tribunal considers just and equitable in all the circumstances having regard to the loss sustained by the complainant in consequence of the dismissal in so far as that loss is attributable to action taken by the employer.(2) The loss referred to in subsection (1) shall be taken to include—(a) any expenses reasonably incurred by the complainant in consequence of the dismissal, and(b) subject to subsection (3), loss of any benefit which he might reasonably be expected to have had but for the dismissal.(3) The loss referred to in subsection (1) shall be

Compensatory award is referenced 5 in UK Parliament Acts