Employment Tribunal Remedies and Awards: What You Can Win

Understanding what remedies and awards are available at employment tribunal helps set realistic expectations and assess settlement offers. Compensation varies significantly by claim type and circumstances.

Types of Remedies

Financial Compensation

Most common outcome:

• Compensation for losses
• Calculated based on claim type
• Past and future losses
• Additional awards in some cases

Reinstatement

Return to same job:

• Same role and terms
• As if never dismissed
• Arrears of pay
• Continuity preserved

Re-engagement

Return to different job:

• Comparable role
• With same or associated employer
• Similar terms
• Continuity preserved

Recommendations

Discrimination cases:

• Actions to reduce discrimination
• Policy changes
• Training requirements
• No compensation if not followed

Unfair Dismissal Awards

Basic Award

Calculation:

• Based on age, service, and pay
• Same formula as statutory redundancy
• 0.5 week's pay per year (under 22)
• 1 week's pay per year (22-40)
• 1.5 weeks' pay per year (41+)

Caps:

• Maximum week's pay: £700 (2024/25)
• Maximum 20 years' service counted
• Maximum basic award: £21,000

Example:

• Age 35, 5 years' service, £500/week
• 5 years × 1 week × £500 = £2,500

Minimum basic award:

• Automatically unfair dismissals: minimum £8,166
• Protected disclosure dismissals
• Health and safety dismissals
• Other protected categories

Compensatory Award

Purpose:

• Compensate for actual loss
• Financial losses resulting from dismissal
• Past and future losses
• Reasonable and just

What's included:

Immediate losses:

• Lost earnings to hearing
• Lost benefits
• Lost pension contributions
• Job search expenses

Future losses:

• Future lost earnings
• Until likely to find new job
• Based on evidence
• Reduced by mitigation efforts

Loss of statutory rights:

• Standard £700
• Covers loss of protection period
• Loss of minimum notice rights

Maximum compensatory award:

• £115,115 (2024/25) or
• 52 weeks' gross pay
• Whichever is lower

Example calculation:

• Gross pay: £35,000/year (£673/week)
• Dismissed: 1 January
• Hearing: 1 October (9 months)
• New job from: 1 November

Past loss (9 months):

• £35,000 ÷ 12 × 9 = £26,250
• Less: £8,000 earnings elsewhere = £18,250

Future loss (estimated 1 month):

• £35,000 ÷ 12 × 1 = £2,917

Loss of statutory rights: £700

Total compensatory award: £21,867

Reductions to Awards

Contributory fault:

• Employee contributed to dismissal
• Reduce by just and equitable %
• Often 10-50% reduction
• Applied to both awards

Failure to mitigate:

• Didn't look for work
• Refused suitable jobs
• Didn't minimize losses
• Reduce future loss

Polkey reduction:

• Procedurally unfair dismissal
• But would have been dismissed anyway
• Reduce by % chance of fair dismissal
• Named after Polkey v Dayton

ACAS uplift:

• Employer breached ACAS Code
• Increase award up to 25%
• Applied where unreasonable failure
• Procedural failings

Example with reductions:

• Total award calculated: £20,000
• Contributory conduct: -25% (£5,000)
• Reduced to: £15,000
• ACAS uplift: +20% (£3,000)
• Final award: £18,000

Discrimination Awards

No Cap

Unlimited compensation:

• No maximum
• Based on actual losses
• Can be very substantial
• Depends on circumstances

Components

Financial loss:

• Past loss of earnings
• Future loss of earnings
• Lost pension rights
• Other financial losses
• Calculated as unfair dismissal

Injury to feelings:

• Distress caused
• Hurt and humiliation
• Anxiety and stress
• Dignitary harm
• Vento bands apply

Personal injury:

• If discrimination caused injury
• Psychiatric harm
• Physical illness
• Medical evidence needed
• Additional to injury to feelings

Aggravated damages:

• Employer's conduct made worse
• Handled complaint badly
• Conduct after discrimination
• Adds to injury to feelings
• Relatively rare

Exemplary damages:

• Punish employer
• Calculated disregard of rights
• Very rare
• High threshold

Vento Bands (Injury to Feelings)

Current bands (2024/25):

Lower band: £1,200 - £11,700

• Less serious cases
• One-off incidents
• Minor impact
• Short duration

Middle band: £11,700 - £35,200

• Serious cases
• Not most severe
• Significant impact
• Ongoing conduct

Upper band: £35,200 - £58,700

• Most serious cases
• Severe impact
• Lengthy campaign
• Serious consequences

Exceptional: £58,700+

• Very rare
• Exceptional severity
• Extreme circumstances
• Lasting trauma

Factors Affecting Award

Increase award if:

• Serious discrimination
• Prolonged conduct
• Multiple incidents
• Vulnerable claimant
• Severe impact
• Position of trust
• No apology

Decrease award if:

• Minor incident
• One-off occurrence
• Limited impact
• Apology given
• Steps taken
• Good record

Typical Awards

Realistic expectations:

• Most cases: Lower or middle band
• Sex discrimination median: £12,000-18,000
• Race discrimination median: £15,000-20,000
• Disability discrimination median: £18,000-25,000
• Higher awards are exceptional

Wages and Deductions

Unauthorized Deductions

Award:

• Amount unlawfully deducted
• Plus interest
• No cap
• Usually straightforward

Unpaid Wages

Recovery:

• Wages owed
• Including holiday pay
• Notice pay
• Contractual bonuses
• Plus interest

Holiday Pay

Calculation:

• Untaken holiday × pay
• Including accrued days
• Working Time Regulations
• Often with wages claim

Redundancy Pay

Statutory Redundancy

Calculation:

• Same as basic award
• Age and service based
• Maximum £700/week
• Up to 20 years
• Maximum £21,000

Contractual Redundancy

If contract provides more:

• Enhanced redundancy
• Pay contractual amount
• Can exceed statutory
• Check contract terms

Breach of Contract

Limited Jurisdiction

Tribunal can award:

• Outstanding contractual payments
• Only if employment ended
• Maximum £25,000
• Notice pay, bonuses, etc.

Reinstatement and Re-engagement

When Ordered

Tribunal may order if:

• Practicable
• Appropriate
• Just in circumstances
• Claimant wants it

Reinstatement Order

Return to same job:

• Exact same position
• Same terms and conditions
• As if continuous employment
• Arrears of pay

Includes:

• Back pay from dismissal
• Benefits restored
• Pension rights
• Seniority maintained

Re-engagement Order

Different but comparable job:

• Similar role
• Same or associated employer
• Comparable terms
• Continuity preserved

May differ in:

• Job title
• Specific duties
• Location
• Some terms

Why It's Rare

Less than 1% of cases:

• Relationship broken down
• Impractical
• Loss of trust
• Better to compensate

If Employer Refuses

Additional compensation:

• If employer unreasonably refuses
• Additional award
• 26-52 weeks' pay
• Plus original compensation

Interest on Awards

When Applied

Interest awarded on:

• Injury to feelings
• Discrimination awards
• From mid-point to calculation date
• Statutory rate (currently 8%)

Not usually on:

• Unfair dismissal (unless long delay)
• Basic awards

Calculation

Simple interest:

• Award × rate × time
• From discrimination date
• To calculation date
• Added to award

Tax and National Insurance

Tax Treatment

First £30,000 tax-free:

• Compensation for loss of job
• Injury to feelings
• Discrimination compensation
• Personal injury

Taxable amounts:

• Notice pay
• Holiday pay
• Unpaid wages
• Amount over £30,000

Example

Award breakdown:

• Injury to feelings: £15,000
• Past loss: £20,000
• Notice pay: £5,000
• Total: £40,000

Tax treatment:

• First £30,000: tax-free (from injury + loss)
• Notice pay: £5,000 taxable
• Remaining loss: £5,000 taxable
• Net tax-free: £30,000

Employer Responsibilities

Must deduct:

• Tax on taxable elements
• National Insurance where applicable
• Pay to HMRC
• Provide P45/P60

Typical Award Ranges

Unfair Dismissal

Low-value cases:

• Short service: £3,000-8,000
• Part-time/low pay: £2,000-6,000
• Found new job quickly: £5,000-10,000

Medium-value cases:

• Medium service: £10,000-20,000
• Average earnings: £8,000-15,000
• Some future loss: £12,000-25,000

High-value cases:

• Long service: £20,000-40,000
• High earner: £30,000-115,000 (cap)
• Extended future loss: £40,000-115,000

Median award: Around £13,000

Discrimination

Minor cases:

• One-off incident: £5,000-15,000
• Limited impact: £3,000-10,000
• No financial loss: £2,000-12,000

Moderate cases:

• Ongoing conduct: £15,000-35,000
• Significant impact: £20,000-50,000
• Some financial loss: £25,000-60,000

Serious cases:

• Severe discrimination: £40,000-100,000
• Major financial loss: £60,000-150,000+
• Career destroyed: £100,000-300,000+

Median varies by type:

• Sex: £12,000-18,000
• Race: £15,000-22,000
• Disability: £18,000-28,000

Wages Claims

Usually straightforward:

• Amount owed: £500-5,000 typical
• Holiday pay: £1,000-3,000 common
• Notice pay: £2,000-8,000 typical
• Plus interest

Factors Affecting Awards

Increase Award

Higher compensation if:

• Long service
• High earnings
• Senior position
• Difficulty finding work
• Older worker
• Specialized role
• Serious breach
• Bad employer conduct
• Vulnerable claimant
• Severe impact

Reduce Award

Lower compensation if:

• Short service
• Low earnings
• Junior role
• Quickly found work
• Younger worker
• Transferable skills
• Minor breach
• Employee contributed
• Failed to mitigate
• Limited impact

Setting Expectations

Be Realistic

Most awards are modest:

• Medians below maximums
• Many settle for less
• Costs eat into awards
• Long wait for money

Don't assume:

• Maximum awards
• Perfect compensation
• Punitive damages
• Getting rich

Calculate Your Claim

Work out realistically:

• Basic award (if applicable)
• Past financial losses
• Future loss (realistic period)
• Injury to feelings (realistic band)
• Total likely award

Consider:

• Chances of winning
• Likely reductions
• Legal costs
• Time and stress

Using This Information

For Settlement

Assess offers against:

• Likely tribunal award
• Chances of success
• Costs to continue
• Time to hearing
• Certainty vs. risk

For Tribunal

Prepare evidence of:

• Financial losses
• Mitigation efforts
• Job search
• Impact on you
• Medical evidence (if claiming injury)

Checklist

Calculating Unfair Dismissal

• Basic award (age, service, weekly pay)
• Past loss (dismissal to hearing)
• Less earnings elsewhere
• Future loss (realistic period)
• Loss of statutory rights (£700)
• Consider reductions (contribution, Polkey)
• Consider ACAS uplift

Calculating Discrimination

• Financial losses (as unfair dismissal)
• Injury to feelings (which Vento band?)
• Personal injury (medical evidence?)
• Aggravated damages (warranted?)
• Interest on injury to feelings
• Total compensation

Evidence Needed

• Payslips proving pay
• P45 showing end date
• Evidence of job search
• Proof of new earnings
• Benefits received
• Medical evidence (if relevant)
• Impact statement
• Mitigation efforts

Tax Planning

• Understand £30,000 exemption
• Identify taxable elements
• Calculate net receipt
• Consider tax year timing
• Employer deducting correctly

Key Principles

Purpose of Awards

Compensation not punishment:

• Reimburse actual losses
• Make you financially whole
• Not to punish employer
• Not to make you rich

What You Can't Get

No awards for:

• Punitive damages (except rare cases)
• Hurt feelings in non-discrimination
• Distress from unfair dismissal alone
• Harm to reputation generally

Maximizing Your Award

To get higher awards:

• Keep good records
• Document losses
• Evidence job search
• Mitigate losses
• Seek medical help (if relevant)
• Keep contemporaneous notes
• Build strong case

Reality Check

Most tribunal awards are modest. Media reports exceptional cases, but typical awards are much lower. Set realistic expectations, understand how compensation is calculated, and use this knowledge to assess settlement offers and prepare your case.

The purpose of employment tribunal awards is to compensate you fairly for losses suffered, not to punish the employer or provide a windfall. Understanding realistic award levels helps you make informed decisions about settlement and what to claim.