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What compensation might I get from my employer if I have been unfairly dismissed?

The amount you might be awarded will depend on the individual circumstances of the case. In most successful unfair dismissal claims any financial award is made up of a basic award and a compensatory award. Where discrimination is proven, an award for injury to feelings will also be due.

The basic award is designed to compensate you for the loss of job security and is almost identical to statutory redundancy payments.

The compensatory award for unfair dismissal has a statutory limit (other than in discrimination cases) which is reviewed every year: it is currently £68,400. The aim of this element of any award is to try to make good your financial loss and will take into account the following:

  • any immediate loss of earnings (ie losses to date)
  • future loss of earnings (eg anticipated loss until you find a new job)
  • loss of statutory employment protection rights (ie £300 for the fact that you will have to start accruing length of service related benefits from scratch)
  • loss of pension rights

Despite the occasional press report of big sums won in a few employment cases, the typical award is well below the theoretical maximum. The average Tribunal award in 2009–2010 for unfair dismissal was only £9,120.