If you have been unfairly dismissed and you do not wish to consider reinstatement or reengagement an Employment Tribunal will approach compensation in 2 stages, as follows:-

A Basic award is calculated with reference to the number of years service you have completed with your employer. 

• one and a half week’s pay for each year of employment after the age of 41.  
• one week’s pay for each year of employment between ages 22 to 40.  
• half a week’s pay for each year of employment under the age of 22.

The “week’s pay” is capped by the statutory maximum (currently £400 per week), and a maximum of 20 years service counts towards the calculation. The maximum basic award is therefore £12,000.

A Compensatory award is

“Such amount as the Tribunal considers just and equitable in all the circumstances having regard to the loss sustained by the complainant in consequence of the dismissal insofar as that loss is attributable to action taken by the employer”.

The elements of a compensatory award include:-

• Loss of earnings.
• Loss of bonus or commission.
• Loss of other benefits.
• Loss of pension.
• Expenses.
• Loss of statutory rights.
• Future losses.

Where the ACAS Code of Practice on Disciplinary and Grievance Procedures has not been followed a Tribunal may “if it considers it just and reasonable in all the circumstances to do so” increase or reduce any “award” by no more than 25%.