The basic award
The basic award

The following Employment practice note provides comprehensive and up to date legal information covering:

  • The basic award
  • Calculation
  • UK domestic provisions
  • Minimum or fixed level in certain cases
  • Deductions
  • Acas Code of Practice
  • Failure to give written statement of terms

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: Brexit and IP completion day—implications for employment lawyers.

Coronavirus (COVID-19): The Employment Rights Act 1996 (Coronavirus, Calculation of a Week’s Pay) Regulations 2020 (Week’s Pay Amendment Regs 2020), SI 2020/814, which provide (among other things) that any basic award, compensatory award or additional award payable to an employee who has been furloughed under the Coronavirus Job Retention Scheme (CJRS) is calculated on the basis of their normal wages, rather than a reduced furlough rate, are considered in Practice Note: Coronavirus Job Retention Scheme—right to statutory redundancy and other termination payments.

An award of compensation for unfair dismissal generally consists of a 'basic award' and a 'compensatory award'.

The basic award is made to reflect the fact that the employee has been unfairly dismissed. It is calculated in much the same way as a statutory redundancy payment and depends on the gross weekly pay of the employee, their

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