Constructive Dismissal Compensation

When assessing the amount of constructive dismissal compensation to award, an employment tribunal will have to calculate the basic award and the compensatory award.

The basic award is calculated by considering the employee's age, length of employment and gross weekly earnings. For each year of continuous employment when the employee was under 22, half a week's pay is awarded.

For each year of continuous employment when the employee was between the age of 22 and 40, one week's pay is awarded.

For each year of continuous employment when the employee was 41 or over, one and a half week's pay is awarded. In cases where an employee's contract was terminated after 01 February 2009, the statutory limit on a week's pay was changed to £350.

When calculating constructive dismissal compensation, the compensatory award must also be considered. The amount of constructive dismissal compensation awarded must be just and equitable.

The compensatory award is based upon the actual losses suffered by the employee. So, loss of earnings, and other related benefits are considered. These losses are considered from the date of the dismissal to the date of the tribunal hearing. Future loss of earnings is also considered. However, dismissed employees are under a duty to mitigate their losses.

In February 2009, the maximum amount of constructive dismissal compensation that a tribunal can award changed to £66,200. The amount of compensation awarded may be reduced if the employee does not follow the statutory procedures.

If you would like to obtain legal advice on constructive dismissal compensation, Contact Law can put you in touch with a local specialist Employment Solicitor free of charge. So, if you have any questions or would like our help in finding local Employment Solicitors please call us on 0800 1777 162 or complete the web-form above.