What can be claimed

[ch 10: pages 389-390]

The compensatory award can include:

• expenses resulting from the dismissal;

• lost wages from the dismissal date up to the hearing, after deducting the tax and National Insurance Contributions the claimant would have paid if they had been working;

• loss of statutory protection, to reflect the notional loss of job security that comes from having enough service to claim unfair dismissal. It should be around £500-£600 to reflect the need for two years’ service;

• costs directly associated with seeking new work, such as travel costs to interviews – all evidence should be kept, including receipts;

• future net lost wages – these are supposed to reflect how long it is likely to take to find another job, considering individual characteristics such as age and any disability, and general features such as poor economic conditions; and

• lost pension rights. There is guidance, issued by the President of Employment Tribunals, explaining how this is worked out.

An employee who finds a new, higher-paid job will have no ongoing claim for lost earnings.

An employer's ability to pay is irrelevant to the size of the award (Tao Herbs and Acupuncture Limited v Jin [2010] UKEAT 1477/09/1407). Employers cannot escape the obligation to pay proper compensation by arguing that the payment would endanger their business.