Unfair dismissal maximum award increases from 6 April 2014

18 May 2014
Unfair dismissal maximum award increases from 6 April 2014

For unfair dismissals on or after 6 April 2014, the maximum compensatory award increases to 76,574.

The compensatory award compensates employees for loss of earnings. For dismissals effective on or after 29 July 2013, compensatory award is calculated as either the statutory maximum or 52 weeks' pay, whichever is lower.

However there is no cap for cases of discrimination and whistleblowing.

The basic award, by contrast, is calculated using a statutory formula, which includes length of service, age and weekly earnings at the point of dismissal. The maximum basic award payable increases from 13,500 to 13,920 from 6 April 2014.

For further information on unfair dismissal, see the redundancy and dismissal section of HRBird.

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