The unfair dismissal compensatory award
The unfair dismissal compensatory award

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

  • The unfair dismissal compensatory award
  • Calculation
  • Loss of earnings after dismissal caused by illness or other incapacity
  • Loss of earnings after dismissal with more than one cause
  • Accelerated receipt
  • Duty to mitigate
  • Salary increases and benefits accruing post-dismissal
  • Expenses and benefits
  • Loss of statutory rights
  • Loss of long notice periods
  • Injury to feelings and other non-financial losses
  • Losses before contractual termination in constructive dismissal cases
  • Deductions for sums received
  • Polkey reduction for chance of fair dismissal
  • Acas Code of Practice
  • Failure to give written statement of employment particulars
  • Contributory fault
  • Reduction for whistleblowing disclosure not made in good faith
  • Effect of taxation: the reverse-Gourley principle and grossing up
  • Statutory maximum
  • Order of increases/deductions
  • Double recovery
  • Recoupment and interest

FORTHCOMING CHANGE: From April 2020, employer NICs will be payable on termination payments above £30,000. This change will be implemented by the National Insurance Contributions (Termination Awards and Sporting Testimonials) Act 2019. It was originally intended for this change to take effect from 6 April 2018 but on 2 November 2017, it was announced the Bill would be delayed and it would take effect from 6 April 2019. Then in the Budget 2018 it was announced that the change would actually take effect on 6 April 2020. See News Analysis: Budget 2018—Summary of employment law issues and LNB News 01/05/2019 1. 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.Employment Rights Act 1996, s 118 The basic award is considered in Practice Note: The basic award. See also the LexisCalculate online calculators: • basic award calculator, and • LexisCalculate Employment: unfair dismissal schedule of loss application (and the related Practice Note: Guide to using the Lexis®PSL Employment Schedule of Loss application) Calculation 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