Unfair dismissal maximum award is something that you’ll want to be aware of before you enter into any legal action around your dismissal.
Calculating what your maximum award for unfair dismissal is can help you plan what your future plans are and give you clarity on how you move forward.
An unfair dismissal can be a difficult time for several reasons, but not having clarity on your financial situation is possibly one of the worst factors. It’s also crucial to know precisely what your situation is and whether your dismissal can be classed as unfair dismissal as per employment law in the UK.
If you meet any of the following conditions, then it can be classed as unfair dismissal:
- You were not given a fair reason for your dismissal
- You weren’t given enough reason to justify your dismissal
- You were not allowed a full and fair dismissal procedure
Unfair Dismissal Maximum Award
The maximum award for unfair dismissal will depend on several factors, including how long you worked for your employer, the age you were when you were dismissed, and what your gross weekly pay was.
Another thing to be aware of is that an unfair dismissal claim must be made within 3 months of your employment ending, whether it was the date of your dismissal or the last day of your notice period.
Making an unfair dismissal claim might mean going to an employment tribunal if it can’t be resolved beforehand.
A legal expert such as an employment solicitor will be able to assist you with your best options if your case can’t be resolved and you need to make an unfair dismissal claim, including if it goes to an employment tribunal.
The maximum award for unfair dismissal is calculated based on a basic award and a compensatory award, so there are two key parts to any claim.
The basic award is calculated as below:
- Half a weeks’ pay for each complete year of employment under the age of 22
- 1 weeks’ pay for each complete year of employment between 22-40
- 1.5 weeks’ pay for each complete year of employment aged 41+
A weeks’ pay is capped at £571 if you were dismissed on or after 6 April 2022, and the basic portion is capped at a maximum of 30 weeks. This means the total figure will be £17,130 for those dismissed on or after 6 April 2022.
The compensatory award is where personal circumstances are considered when calculating the total sum.
For example, it might be you have lost earnings and missed out on bonuses, pensions, and other financial remuneration. For this segment of the award, the total amount is capped at £105,813, although there are some extenuating circumstances in which it might be higher.
So, if you add both the maximum award for the basic and compensatory segments of the compensation award for unfair dismissal, the total maximum award is £122,943. However, it’s worth being aware that some extenuating circumstances might mean the total figure is larger, though your solicitor will be able to explain where this might be relevant.
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