AM Online

Unfair dismissal - compensation levels

The maximum compensation that can be awarded by Employment Tribunals at present is £56,800.

Tribunal awards are generally made up of a Basic Award, which is usually equivalent to the normal redundancy pay and a Compensatory Award, which is designed to compensate the employee for the financial loss of losing the job.

In a recent case (Burlo v Langley and Carter) the result was again in favour of the employer. Contrary to some earlier cases this particular case made the point that arguments regarding hypothetical losses should not override the basic principle that the employee’s claim should not exceed the actual loss as a result of dismissal.

Thus, for instance, if an employee is ill and earning SSP when dismissed they should only receive SSP during the notice period and not full pay.

It should be noted, however, that if the employee has secured another job during the notice period then they should still get their notice pay because contractually they are entitled to it.

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