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Compensation for an unfair dismissal claim is made up of two elements: a basic award (similar to a redundancy payment ie based on age and length of service - therefore a maximum payment of 10,500) and a compensatory award based on the actual financial loss that can be attributed to the employer. It is not yet known whether the limit on a week's pay for the purposes of calculating the basic award will be increased in line with the future increase to statutory redundancy payments.

·     A minimum basic award of four weeks’ pay is made where a dismissal is regarded as automatically unfair under ERA 1996, s98A(i) if the basic award is less than this amount. However such an award need not be made where it would result in injustice to the employer.

·     The minimum basic award for unfair dismissal for a reason related to the complainant's appointment as a Health and Safety representative, exercise of rights under the Working Time Regulations, activities as a pension scheme trustee, activities as an employee representative in connection with redundancies or a transfer of undertakings is £4,700.

·    The minimum basic award for dismissal or selection for redundancy on grounds related to union membership or activities is £4,700.

·     The minimum compensation awarded for exclusion or expulsion from a trade union is £7,300.

·     The maximum compensatory award a tribunal can award to an employee who brings a successful claim is £66,200. This brings the total potential liability for a normal unfair dismissal claim to £76,700.

·     There is no limit on the amount of compensation for cases of whistle-blowing, certain health or safety matters or discrimination on grounds of rate, sex, sexual orientation, religion or belief, disability or age.