Basic award
Plain-English definitions for England and Wales. General information, not legal advice. Laws and figures change - always check the current position on GOV.UK.
Basic award A fixed element of unfair dismissal compensation calculated like statutory redundancy pay: a number of weeks' pay based on your age and length of service, with the weekly pay figure subject to a statutory cap. It does not depend on your actual financial loss.
Related terms
- Compensatory award
- The part of unfair dismissal compensation that reflects your actual financial loss from the dismissal - mainly lost earnings and benefits, and subject to your duty to mitigate. It is normally capped (see statutory cap), though discrimination and whistleblowing awards are not.
- Redundancy
- A dismissal because the employer's need for employees to do work of a particular kind has ceased or diminished - for example a workplace closing or a role disappearing. A genuine redundancy still requires a fair process, and employees with 2 years' service are usually entitled to statutory redundancy pay.
- Statutory cap (compensation limit)
- The legal limit on the compensatory award for unfair dismissal: the lower of a fixed annual figure (reviewed each April) or 52 weeks' gross pay. Importantly, there is no cap on compensation for discrimination, whistleblowing, or health-and-safety dismissals.
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