Calculating compensation
What’s the formula? So, now you know what the basic numbers are, how can you calculate (or at least estimate) what your potential liability might be? An unfair dismissal award is made up of a basic and compensatory award. The basic award is dependent on the employee’s age, length of service and average gross weekly wage. Calculation is made by taking into account a maximum sum of, currently, £290 per week and a maximum length of 20 years’ service. The employee is entitled 1.5 weeks’ pay for each year during which they’re aged 41-64, 1 week’s pay when aged 22-40 and 0.5 week’s pay when aged 22 or less. The compensatory award is based on the employee’s losses. Damages are assessed in accordance with their net value and include loss of wages from dismissal date to hearing, future loss of earnings, loss of benefits, loss of pension rights and loss of statutory rights.
However, we’ve found a handy online calculator which will do all the number crunching for you. With only limited data input required, we found the results to be pretty impressive (though necessarily they can’t be relied upon). Take a look at http://www.sykesanderson.com/unfair_dismissal_calculator.asp.
Create your profile to unlock this advice and many more.