The Basic Award in the Employment Tribunal

Overview

If you win your dismissal case, the Employment Tribunal will give you compensation made up of a basic award and a compensatory award. The Basic Award is intended to compensate you for the loss of your job security and the fact that you will have to build up a fresh history of continuous employment after your dismissal. It is also intended to reward you for your past service to your Employer. The Basic Award is calculated on a formula in S119 and s220 – s229 ERA 1996. The formula is based on your age, length of service and weekly pay. It is the equivalent of a statutory redundancy payment, so if you have already received a statutory redundancy payment, and the reason for your dismissal was redundancy, then you are not entitled to the Basic Award.

The Basic Award can be reduced if the Employment Tribunal believes that your deserve it because of your behaviour, or where you have unreasonably refused your employers offer to reinstate you at work. In cases of unfair dismissal for reasons of trade union activities, health and safety, occupational scheme trusteeship or Employee representative activities, the Basic Award is calculated as described below, but subject to a minimum award. If your Basic Award comes to more than the minimum amount, you can claim the higher amount. If the Basic Award is lower, you get the minimum amount. The minimum amount is reviewed every year.

 

How to Calculate the Basic Award

The Basic Award is calculated by counting back in whole years from the last date of your employment. It multiplies an age factor by the number of years with your Employer, and one weeks gross pay up to the statutory maximum. The age factor is calculated as follows:

  1. Half a week’s pay for every year of employment when you were below the age of 22.
  2. One weeks pay for every year of employment when you were aged between 22-41.
  3. One and a half weeks pay for every year of employment when you were aged 41 or over.

The formula for calculating the Basic Award is;

(Age Factor) x (Your length of service with your Employer) x (One weeks gross pay up to the statutory maximum) = Basic Award

 

Resources available

Template Letter Before Claim

How to Prepare a Schedule of Loss for the Employment Tribunal

Schedule of Loss Spreadsheet for unfair dismissal

Schedule of loss spreadsheet – Discrimination

ET1: Breach of Contract

ET1: Non-Payment of Holiday Pay on Termination

ET1: Non-Payment of Holiday Pay whilst still employed

ET1: Refusal to permit taking of Annual Leave

Disciplinary action and capability

Discrimination at work

Surviving a workplace suspension

How to fight dismissal on Probation

DOCUMENTS, FORMS AND LETTER TEMPLATES

 

 

Best of the web

GOV.UK – Basic award calculator

Citizens Advice – How to work out the basic award in unfair dismissal

WorkSmart – Basic award

Disclaimer

This resource is published by Employee Rescue Limited. Please note that the information and any commentary on the law contained herein is provided for information purposes only. The information and commentary does not, and is not intended to, amount to legal advice. Employee Rescue accepts no responsibility for any loss occasioned to any person acting or refraining from action as a result of the material contained in this publication. Further specialist advice should be taken before relying on the contents of this publication. You can send an e-mail to thelawyers@employeerescue.co.uk for such specialist advice if required.

 

Disclaimer

This resource is published by Employee Rescue Limited. Please note that the information and any commentary on the law contained herein is provided for information purposes only. The information and commentary does not, and is not intended to, amount to legal advice. Employee Rescue accepts no responsibility for any loss occasioned to any person acting or refraining from action as a result of the material contained in this publication. Further specialist advice should be taken before relying on the contents of this publication. You can send an e-mail to thelawyers@employeerescue.co.uk for such specialist advice if required.

 

Case Study

The possibility of losing your job whether through dismissal, redundancy or sickness is something that doesn't bear thinking about for…The Disciplinary Hearing: Understanding the Process, and Surviving it
Business, Finance & Law