Is the term used to describe monetary awards made by an Industrial Tribunal where an application made by an individual is upheld. In a case of Unfair Dismissal, compensation is one of three awards given by an Industrial Tribunal and is usually made up of the following elements:
- Basic Award – is calculated in the same way that a Statutory Redundancy Payment is calculated and is based on an individual’s age and length of service. This is subject to a maximum limit which usually increases each year and is £15,000 (as at 14th February 2016).
- Compensatory Award – is such amount as a Tribunal considers just and equitable taking into account the financial loss sustained by the claimant as a result of being dismissed. This is subject to a maximum limit which usually increases each year and is £79,100 ((as at 14 February 2016)
- Additional Award – if an employer refuses to comply with an order of Re-instatement or Re-engagement a Tribunal may order them to pay an additional award of compensation of not less than 26 weeks nor more than 52 weeks’ pay. (Maximum of £26,000 ((as at 14th February 2016)
In a case of Discrimination, the compensation that is awarded may include an element referred to as ‘Injury to Feelings’ made to reflect the degree of upset, humiliation and anger as a result of the discriminatory act.
See also Re-engagement/Re-instatement Order