Are you looking to claim compensation for unfair dismissal?


If you are successful in your claim for unfair dismissal, compensation (unfair dismissal damages) is the most likely outcome to be awarded to you.

Call us and we can put you in touch with a specialist employment solicitor who can assess if your case will be financially viable and how much compensation you are likely to be awarded.

What is unfair dismissal compensation?

Unfair dismissal compensation (unfair dismissal damages) is made up of two components:

  • A basic award which is calculated much like an entitlement to a redundancy payment (i.e. based on age and length of service)
  • A compensatory award which is based on the actual financial loss that can be attributed to your employer. The compensatory award is calculated as the difference between what you would have earned in your previous employment and any new income that you earn after your dismissal. The loss will be calculated up to the date of the hearing but there will normally be an allowance for future loss as well if you remain unemployed or underemployed at that time

At the time of writing the basic award can be up to £12,900 and is calculated according to a formula that takes into account your age, length of service and pay. However, the award can be reduced in certain circumstances.

The compensatory award makes up for lost wages and other benefits. It can be up to £72,300 and varies depending on factors like whether you found a new job in a reasonable period of time and the effect of being dismissed on your future earning potential.

Negotiating your settlement

Once you have an indication of how much compensation you are likely to receive from an unfair dismissal claim you will be in a better position to negotiate a settlement. Entering into a settlement for unfair dismissal compensation can mean avoiding prolonged, costly and stressful legal battles.

It is also important to consider that legal costs are not ordinarily recoverable in unfair dismissal claims made through employment tribunals.

On the contrary, you may be able to recover your legal costs in a successful wrongful dismissal case made in the civil court system. When calculating the benefits of legal action versus a settlement, you should consider how much your legal costs are likely to be.

If you are considering entering a settlement, also referred to as a compromise agreement, it is important to get legal advice. A compromise agreement generally sets out the terms and conditions on which you accept the settlement, first-and-foremost of which is that you agree not to pursue any legal action.

For more particular advice on compromise agreements, please see our information page.

Using a solicitor in your claim for unfair dismissal can make a huge difference to the amount of compensation you receive. Contact Law can put you in touch with a specialist employment solicitor to help you achieve the best compensatory award. Please call us on 0800 1777 162 or complete the web-form above.

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