How much can an employer be ordered to pay of it loses a claim for Unfair Dismissal at an Employment Tribunal? For many (especially small) employers an award of compensation to an employee following a finding of unfair dismissal could jeopardise the future of the business, sending it into bankruptcy or liquidation.
The maximum that a Tribunal can award is, currently, £65,300 plus a small basic award calculated on age and length of service (unless the dismissal is connected with health and safety or whistleblowing). The employee has to be able to prove his/her losses and will be awarded such sum as the Tribunal feels is “just and equitable” in all the circumstances. S.123 of the Employment Rights Act 1996 is the relevant piece of legislation and also says that the amount of the award is such sum