What is the basic award for unfair dismissal?

The basic award is the foundational compensation for unfair dismissal, calculated under ERA 1996 and linked to weeks' pay.

In UK law, the basic award is the initial compensation for unfair dismissal, calculated under the Employment Rights Act 1996 (ERA 1996). It acts as the base level of remedy that the tribunal may award, subject to statutory limits.

It is separate from any additional sums, and interacts with the compensatory award to form the overall remedy for unfair dismissal.

• Calculated under ERA 1996 using weeks' pay as the reference
• Subject to statutory limits and a defined cap
• Separate from any additional compensation, but combined in the overall remedy

How weeks' pay is calculated

Week's pay is the reference amount used to calculate the basic award, often based on earnings in the period before dismissal.

Week's pay is the amount used to multiply by the number of weeks to determine the basic award. The exact method is defined in statute and may rely on the worker's normal weekly pay before dismissal.

If earnings are irregular, the law provides methods to calculate an average week’s pay to ensure fairness.

• Use the worker's normal weekly pay where possible
• If pay is irregular, an average week’s pay may be used (often calculated from recent weeks)
• Special rules apply for employees with variable earnings, overtime, or salary adjustments

1. Identify the relevant pay period; determine weekly pay; apply weeks multiplier; check for any adjustments or exceptions.

How many weeks does the basic award cover?

The number of weeks is determined by statute and multiplied by the weekly pay to produce the basic award total.

The law specifies the basis for counting weeks in the basic award, with the number of weeks defined by the statutory framework for unfair dismissal cases.

In practice, tribunals apply the statute to each case, so the exact number of weeks can vary depending on the era and specific provisions in force at the time of dismissal.

• Weeks are set by statute and may change with reforms
• The weeks are multiplied by the appropriate week's pay
• The calculation forms part of the basic award total

1. 1) Identify the weeks count in the statute applicable to the case; 2) Multiply by the weekly pay; 3) Apply any caps or limits to the basic award.

Statutory limits and how the basic award interacts with the compensatory award

The total cannot exceed the statutory limit that combines the basic award with the compensatory award under ERA 1996.

The limit mentioned in subsection (3) above is the total of the basic award and the compensatory award, with the exact figures set by statute.

If the sum would exceed the limit, the tribunal adjusts the award to stay within the cap.

• Basic award and compensatory award are combined within a legal limit
• The compensatory award cap is a separate statutory figure
• Tribunals adjust to stay within the overall limit

1. 1) Calculate the basic award; 2) Determine the compensatory award cap; 3) Add them and compare to the limit; 4) If over, reduce to the limit.

Time limits for making an unfair dismissal claim

Claims must be presented within three months of dismissal, with possible extensions if reasonable.

The standard time limit for presenting a claim is three months from the date of dismissal.

There are extensions where it was not reasonably practicable to present earlier; tribunals can grant additional time if justified.

• Three months from dismissal is the usual limit
• Extensions may be granted if not reasonably practicable to present in time
• Always check the tribunal's discretion and any mediation extensions

1. 1) Note the dismissal date; 2) Prepare and file the claim promptly; 3) If due to mediation or other reason, apply for an extension within the tribunal's rules.

Practical steps to work out your basic award

A practical, step-by-step approach to calculate the basic award.

Gather payslips and determine your normal weekly pay before dismissal.

Identify the statutory weeks count applicable to your case and multiply by the weekly pay.

• Collect recent payslips and P60 for accuracy
• Calculate the weekly pay using the statutory method
• Apply the weeks multiplier and check against the cap and any interaction with the compensatory award

1. 1) Gather payslips and identify the relevant pay period; 2) Determine normal weekly pay; 3) Identify weeks to count; 4) Calculate basic award; 5) Check combined limit with the compensatory award.