At present unfair dismissal awards are made up of a statutory basic award and a compensatory award. The basic award is essentially what an employee would receive if they were made redundant.   

Since Monday 29th July 2013, the unfair dismissal compensatory award in most types of cases has been capped at 52 weeks' pay or £74,200, whichever is lower. This cap only applies to employees who were dismissed on or after 29th July 2013. The calculation of a year’s pay will be based on the statutory definition of "a week's pay". Basically this means the gross salary figure (i.e. before tax and National Insurance Contributions) however, pension contributions, benefits-in-kind and discretionary bonuses will be excluded. 

There will also be new rules on interest which will mean that interest will accrue on tribunal awards from day one, unless they are paid in full within 14 days.

To discuss any unfair dismissal claims, please contact Katie Stephenson, a Solicitor in the Employment Department at BHW Solicitors in Leicester. Katie can be contacted on 0116 281 6227 or by email at

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