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Compensation

Unfair-dismissal compensation

Understand the basic and compensatory awards, the evidence needed to prove loss and the factors that can increase or reduce unfair-dismissal compensation.

What you need to know

Unfair-dismissal compensation is not a fixed payment for losing a job. A potential award commonly combines a basic award with compensation for proven financial loss, subject to the rules and limits applying to the claim.

The Tribunal can also consider mitigation, contributory conduct, whether dismissal would have happened after a fair process and any applicable ACAS adjustment.

What to do

  1. Step 1

    Check eligibility and liability

    Confirm qualifying service, the reason for dismissal and whether the employer followed a fair investigation, hearing and appeal process.

  2. Step 2

    Separate each head of loss

    Set out the basic award, past and future earnings, benefits, pension loss and any other legally available compensation separately.

  3. Step 3

    Keep mitigation evidence

    Retain job applications, interviews, earnings and benefits records showing reasonable efforts to reduce financial loss.

  4. Step 4

    Apply possible adjustments

    Consider statutory caps, contributory conduct, a possible Polkey reduction and any ACAS uplift or reduction before relying on an estimate.

Check the details

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