Experts explain: An SME guide to unfair dismissal

Compensation – how much could an employee get?

Stephen Morrall, Partner at Hunters Law LLP:

“Where unfair dismissal is established, the available remedies are reinstatement, reengagement or compensation. Compensation will consist of:

• a basic award, calculated by reference to the employee’s age, week’s pay (capped at £538 gross) and length of service, up to £16,140;
• a compensatory award of an amount that it considers fair to compensate for financial loss up to the lower of £88,519 or 52 x a week’s pay; and
• an additional award of between 26 and 52 weeks’ pay if the employer does not comply with an order for reinstatement or reengagement.”