This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Employment Tribunal Remedies Overview explains UK compensation, reinstatement, and legal awards for unfair dismissal, discrimination, whistleblowing, and wage claims in England and Wales employment tribunals.
Employment Tribunal remedies are the legal outcomes or awards that a tribunal can grant when a claim succeeds in England and Wales. These remedies are designed to compensate individuals for losses arising from breaches of employment law and, in some cases, to restore employment relationships or formally recognise legal rights.
Remedies are strictly governed by statute and depend on the type of claim brought, such as unfair dismissal, discrimination, whistleblowing detriment, or unlawful deductions from wages. Employment Tribunals do not have unlimited powers and can only award remedies permitted by law.
Legal Basis for Employment Tribunal Remedies
Tribunal remedies are primarily derived from key UK employment legislation, including:
- Employment Rights Act 1996
- Equality Act 2010
- Working Time Regulations 1998
These frameworks define what remedies are available, eligibility requirements, and how compensation is calculated.
Main Categories of Employment Tribunal Remedies
Employment Tribunal remedies generally fall into three main categories:
- Financial compensation
- Reinstatement or re-engagement
- Declarations and recommendations
Each category applies differently depending on the nature of the claim.
1. Financial Compensation Awards
Unfair Dismissal Compensation
In unfair dismissal cases, compensation is typically made up of:
- Basic award: Similar to statutory redundancy pay, based on age, length of service, and weekly pay
- Compensatory award: Reflects actual financial losses caused by dismissal
Compensatory awards may include:
- Loss of earnings
- Loss of benefits (pension, bonuses, company perks)
- Loss of statutory rights
- Future loss of income in some cases
There is a statutory cap on compensatory awards in most unfair dismissal claims, although exceptions exist.
Discrimination Compensation
In discrimination claims under the Equality Act 2010, compensation is uncapped and may include:
- Financial losses (past and future earnings)
- Injury to feelings (based on severity of impact)
- Aggravated damages in serious cases
- Interest on awards
Injury to feelings is assessed using established legal guidelines and depends on the seriousness and duration of discriminatory conduct.
Whistleblowing Compensation
Whistleblowing claims also allow uncapped compensation. Awards can include:
- Full financial losses caused by dismissal or detriment
- Future loss of earnings
- Pension loss
- Injury to feelings in appropriate cases
These claims are treated seriously due to public interest protections.
Wages and Deduction Claims
Where employees are underpaid or suffer unlawful deductions, tribunals can award:
- Back pay
- Holiday pay arrears
- Minimum wage shortfalls
- Interest in some cases
These awards are typically straightforward calculations based on documentary evidence.
2. Reinstatement and Re-engagement
Employment Tribunals have the power to order the return of an employee to work, although this is rare in practice.
Reinstatement
Reinstatement restores the employee to their original job as if dismissal never occurred.
Re-engagement
Re-engagement involves placing the employee in a different but comparable role within the organisation.
Tribunals consider factors such as:
- Breakdown of trust and confidence
- Practical feasibility of returning
- Employer's willingness to comply
- Employee's preference
If reinstatement or re-engagement is ordered but not complied with, additional compensation may be awarded.
3. Declarations and Recommendations
Declarations
A tribunal may issue a formal declaration confirming that:
- A legal right has been breached
- Discrimination has occurred
- Unfair dismissal has taken place
Although declarations do not provide financial compensation, they carry legal and reputational significance.
Recommendations (Discrimination Cases Only)
In discrimination cases, tribunals may make recommendations aimed at reducing future discrimination in the workplace.
These may include:
- Equality training for staff
- Review of workplace policies
- Changes to recruitment or disciplinary procedures
While historically non-binding, failure to comply can be considered in future proceedings.
Calculation of Compensation
Tribunal compensation is based on evidence and legal principles. Key factors include:
- Length of employment
- Salary and benefits
- Efforts to mitigate loss (for example, finding new employment)
- Severity of wrongdoing
- Psychological impact in discrimination cases
Claimants are expected to take reasonable steps to reduce financial losses after dismissal.
Mitigation of Loss
A fundamental principle in tribunal compensation is mitigation.
This means:
- Claimants must seek alternative employment where possible
- Failure to mitigate may reduce compensation
- Tribunals assess whether reasonable steps were taken to limit financial loss
Evidence such as job applications and interview records may be relevant.
Interest on Awards
In some cases, tribunals may award interest on compensation, particularly in discrimination claims and unpaid wage disputes. Interest is calculated from the date of the wrongdoing to the date of judgment.
Tax Treatment of Tribunal Awards
Certain tribunal awards may be subject to taxation depending on their nature.
Generally:
- Compensation for loss of earnings may be taxable
- Injury to feelings awards may be tax-free up to certain limits
- Statutory redundancy payments are often tax-exempt within thresholds
Tax treatment depends on HMRC rules and the structure of the award.
Time Limits Affecting Remedies
Time limits indirectly affect remedies because claims must be brought within strict deadlines:
- Most claims: 3 months less one day from the act complained of
- ACAS Early Conciliation pauses limitation periods
- Late claims may be rejected entirely, preventing any remedy
Timeliness is therefore critical to securing any award.
Settlement and Alternative Outcomes
Many tribunal cases resolve before reaching a final hearing. Settlement outcomes may include:
- Agreed financial compensation
- Confidentiality agreements
- Withdrawal of claims
- Structured payment arrangements
Settlement is often facilitated through ACAS early conciliation.
Practical Impact of Remedies
Tribunal remedies are designed to:
- Compensate for financial loss
- Address unlawful workplace treatment
- Encourage fair employment practices
- Provide legal recognition of rights
They do not aim to punish employers in a criminal sense, but in discrimination and whistleblowing cases, awards can be significant due to the seriousness of breaches.
Common Questions
Is there a limit on tribunal compensation?
Unfair dismissal compensation is capped in most cases, but discrimination and whistleblowing awards are uncapped.
Can I get my job back?
Yes, but reinstatement and re-engagement orders are rare in practice.
What is injury to feelings?
It is compensation for emotional distress caused by unlawful discrimination.
Do I automatically get compensation if I win?
Not always. Remedies depend on the type of claim and proven losses.
Key Takeaways
Employment Tribunal remedies include financial compensation, reinstatement or re-engagement, declarations, and recommendations. The type and value of remedies depend on the legal basis of the claim, such as unfair dismissal, discrimination, or wage disputes. Compensation is calculated based on financial loss, legal principles, and mitigation efforts, with some claims subject to caps and others uncapped. Remedies are designed to restore losses and enforce workplace rights under UK employment law.
