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

The basic award

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 length of continuous employment before dismissal and their age. In some cases the basic award is set at a particular level or at a particular minimum level. The basic award may also be subject to a number of deductions.

The compensatory award is considered in Practice Note: The unfair dismissal compensatory award.

For information on unfair dismissal remedies generally, see Practice Note: Unfair dismissal remedies—general.

See also the LexisCalculate online calculators:

  1. basic award calculator, and

  2. automated unfair dismissal schedule of loss (and the related

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