What is the maximum compensation I can be awarded at an employment tribunal for unfair dismissal?
Unless the claim includes a discrimination case or you were dismissed for ‘whistle-blowing’, the maximum award is £67,100 (reviewed annually). This sum is made up of two parts. The first is a ‘basic award’ calculated on your length of service and your age, for which the maximum is £8,700. The second is a ‘compensatory award’ that covers loss of income through being unfairly dismissed, and loss of wages until you find a new job. There is a duty upon the individual to mitigate their losses by attempting to find alternative employment. Compensation may be reduced if the tribunal feels you were either partly to blame for the dismissal or you have not taken adequate steps since the dismissal to find alternative employment. It is also worth remembering that the tribunal can reduce awards and in some cases refuse to hear your case if you fail to comply with the statutory disciplinary/grievance procedure. NB: In the year 1 April 2004 to 31 March 2005 the average award was just over £7,000.
