The basic award for unfair dismissal, worked out from your age, service and weekly pay.
It uses the same arithmetic as statutory redundancy pay. The compensatory award is the larger part of most claims and turns on your actual loss, so it is not estimated here.
The short version
- Same formula
- Identical to statutory redundancy pay: age bands, capped years, capped week.
- Two awards
- The basic award is predictable. The compensatory award is usually larger and depends on your loss.
- Time limit
- Three months less one day from the dismissal, with Acas conciliation required first.
- Qualifying service
- Two years for ordinary unfair dismissal. Some reasons are automatically unfair from day one.
- Reductions
- The basic award can be cut for conduct before dismissal, or for refusing reinstatement.
Common questions
How is the basic award worked out?
Exactly like statutory redundancy pay: half a week per year worked under 22, one week for 22 to 40, one and a half from 41, counted backwards from your age at dismissal. Only the most recent 20 years count and a week of pay is capped.
Is this all I would get?
No. Most successful claims also produce a compensatory award for actual loss — lost earnings, lost pension, the cost of finding new work. That is usually the larger figure and depends on how long you are out of work, so it cannot be estimated from age and service.
How long do I have to claim?
Three months less one day from the effective date of termination. You must notify Acas for early conciliation before starting a claim, which pauses the clock while conciliation runs.
Do I need two years of service?
For ordinary unfair dismissal, yes. Some reasons are automatically unfair with no qualifying period at all, including dismissal for whistleblowing, for pregnancy or maternity, or for asserting a statutory right.
Can the award be reduced?
Yes. The basic award can be cut for conduct before the dismissal, or for unreasonably refusing an offer of reinstatement. The compensatory award can be cut for contributory fault, failure to mitigate, or under Polkey where a fair procedure would have led to the same outcome.
Does redundancy pay affect it?
Yes. A statutory redundancy payment already received is set against the basic award, so you do not receive both in full for the same dismissal.
What the terms mean
- Basic award
- The fixed part of an unfair dismissal award, calculated like redundancy pay from age, service and a capped week of pay.
- Compensatory award
- Compensation for actual financial loss, subject to a statutory cap and a duty to mitigate by looking for work.
- Automatically unfair
- Reasons for dismissal that need no qualifying service, including whistleblowing, pregnancy and asserting a statutory right.
- Early conciliation
- A required approach to Acas before starting a tribunal claim. It pauses the time limit while it runs.
- Polkey reduction
- A cut to compensation reflecting the chance the dismissal would have happened anyway had a fair procedure been followed.
Guides on this subject
-
Statutory notice periods: how much notice you must give and receive
Your employer owes one week per year of service, capped at 12. You owe one week however long you have…
-
Is redundancy pay taxable? The £30,000 exemption explained
Statutory redundancy pay is tax free. Enhanced payments are treated differently and notice pay is not covered at all. What…
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