Tribunal Award Values

Where a tribunal makes an award of compensation for unfair dismissal the award will consist of a basic award and a compensatory award.

Unfair dismissal - the basic award:

The basic award is calculated according to age, length of service and normal weekly pay in the same way as a statutory redundancy payment would be. For these purposes, where the effective date of termination is on or after 6 April 2025, the maximum amount of a week's pay is £719.

A minimum basic award of £8,763 is payable where the employee was dismissed on grounds of trade union membership or activities, for carrying out legitimate health and safety activities as a health and safety representative, for carrying out functions as an occupational pension scheme trustee or for carrying out functions as an elected employee representative.

Unfair dismissal - the compensatory award:

The compensatory award is such amount as the tribunal considers just and equitable in all the circumstances, having regard to the loss sustained by the applicant in consequence of the dismissal insofar as that loss is attributable to action taken by the employer.

It includes, for example, loss of wages from the date of termination until the date of the hearing, loss of benefits in kind and loss of future earnings.

The maximum compensatory award is £118,223 where the effective date of termination is on or after 6 April 2025. There is an additional cap of 52 times the claimant's weekly pay, which will apply if this is lower than the overall cap of £118,223. (Note that no maximum applies where a person is regarded as unfairly dismissed for one of a number of reasons related to health and safety or for making a protected disclosure.)

Awards for discrimination claims:

There is no limit on the compensation that can be awarded in a discrimination claim. Where a claim is successful, the employment tribunal can order the respondent to pay compensation to the claimant, with the aim of putting them into the position in which they would have been if the unlawful discriminatory conduct had not taken place.

The damages awarded should cover all harm that arises directly from the act or acts of unlawful discrimination. This can include both financial loss and compensation for personal injury (physical and psychiatric) arising from unlawful discrimination, provided in the latter case that the claimant can show that the injury was directly caused by the discrimination suffered.

Damages can also include compensation for injury to feelings, regardless of whether or not the employee has suffered any direct financial loss as a result of the discrimination.

The size of awards for injury to feelings varies depending on the facts of the case and the degree of hurt and distress caused to the claimant by the act of discrimination. There are currently three broad bands of injury to feelings compensation which are known as the Vento bands.

For claims made on or after 6 April 2025, the top band is between £36,400 and £60,700 and applies only to the most serious cases. The middle band of £12,100 to £36,400 is to be used for serious cases that do not merit an award in the highest band and the lower band of between £1,200 and £12,100 should be used for less serious cases, such as where the act of discrimination is an isolated occurrence. (Note that in the most exceptional cases, compensation for injury to feelings can exceed £60,700.