Basic award

The first of two elements of compensation payable to an employee found by an employment tribunal (www.practicallaw.com/9-200-2984) to have been unfairly dismissed (www.practicallaw.com/0-200-3624) (the second element being the compensatory award (www.practicallaw.com/9-200-3101)). The basic award is designed to compensate an employee for loss of job security and is calculated in the same way as the statutory redundancy payment according to a formula based on the employee’s age, length of service and weekly pay (subject to a statutory limit).

For more information on how to calculate the basic award, see Practice note, Compensation for unfair dismissal: Basic award and Checklist, Statutory redundancy pay and basic award calculator (www.practicallaw.com/1-200-3157).

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