What Are Tribunal Remedies for Employment Dismissal Claims?

When an Employment Tribunal in England and Wales finds that an employee has been unfairly or unlawfully dismissed, it can award remedies designed to compensate for financial loss, restore employment where appropriate, or provide alternative relief. These remedies are governed primarily by the Employment Rights Act 1996 and related employment legislation.

Tribunal remedies in dismissal cases are not punitive. Their purpose is to compensate loss arising from unfair dismissal, wrongful dismissal, or related statutory breaches, and to place the claimant, as far as possible, in the position they would have been in had the dismissal not occurred.

This article explains the full range of tribunal remedies, how they are calculated, and the legal principles that determine the outcome of dismissal claims.

Legal Framework for Tribunal Remedies

Employment Tribunal remedies for dismissal claims are primarily based on:

• Employment Rights Act 1996 (sections 112–126 and related provisions)
• ACAS Code of Practice on Disciplinary and Grievance Procedures
• Employment Tribunal Remedies Rules and case law principles

Tribunals assess remedies separately from liability. Once a dismissal is found to be unfair or wrongful, a separate remedy hearing may be held to determine compensation or reinstatement.

Types of Remedies Available in Dismissal Claims

Tribunals may award several forms of remedy depending on the nature of the claim.

1. Reinstatement

Reinstatement means the employee is returned to their original job as if the dismissal had not occurred.

Key features:

• Employment relationship is restored
• Continuity of service is preserved
• Back pay may be ordered for lost earnings

When it is ordered:

Reinstatement is rare and typically only granted where:

• The working relationship remains viable
• The dismissal is found to be clearly unjust
• The employee requests reinstatement

Tribunals are cautious about ordering reinstatement where trust and confidence has broken down.

2. Re-engagement

Re-engagement involves placing the employee back into employment, but not necessarily in their previous role.

This may involve:

• A different role within the same organisation
• Comparable terms and conditions
• Continuity of service in some cases

Re-engagement is more flexible than reinstatement but still uncommon in practice.

3. Compensation (Financial Awards)

The most common remedy in dismissal cases is monetary compensation.

Compensation is designed to reflect actual financial loss caused by the dismissal.

It typically includes two main components:

3.1 Basic Award

The basic award is similar to a statutory redundancy payment and is calculated using:

• Age
• Length of continuous service
• Weekly pay (subject to statutory caps)

The basic award is mandatory in some unfair dismissal cases unless adjusted for specific reasons, such as contributory conduct.

3.2 Compensatory Award

The compensatory award reflects actual financial loss suffered as a result of the dismissal.

It may include:

• Loss of earnings (past and future)
• Loss of statutory rights
• Loss of benefits (e.g. pension contributions, bonuses)
• Job search costs
• Loss of career opportunity in some cases

Tribunals assess compensation based on what is “just and equitable” in the circumstances.

4. Notice Pay (Wrongful Dismissal Remedies)

In wrongful dismissal claims (breach of contract), tribunals may award:

• Statutory notice pay
• Contractual notice pay
• Payment in lieu of notice (PILON), if applicable

This applies where the employer fails to give proper notice or follow contractual termination terms.

5. Holiday Pay and Other Contractual Payments

Tribunals can also award payment for:

• Accrued but untaken holiday entitlement
• Outstanding salary
• Unpaid commission or bonuses (if contractually due)
• Other contractual benefits owed at termination

These claims often overlap with unlawful deduction from wages claims.

6. Injury to Feelings (Limited Circumstances)

In ordinary unfair dismissal claims, injury to feelings is not awarded.

However, it may be awarded where dismissal involves:

• Discrimination under the Equality Act 2010
• Victimisation
• Harassment linked to protected characteristics

In such cases, compensation follows separate Vento band guidelines established by case law.

7. Uplift for Failure to Follow ACAS Code

Where an employer unreasonably fails to follow the ACAS Code of Practice, tribunals may:

• Increase compensation by up to 25%
• Reduce compensation if the employee failed to follow the Code

This uplift applies mainly to unfair dismissal and related claims involving disciplinary procedures.

8. Polkey Reduction

A key principle affecting remedies is the “Polkey reduction”.

This applies where:

• The dismissal was procedurally unfair
• But the tribunal concludes the employee would have been dismissed anyway

In such cases, compensation may be reduced significantly or even eliminated.

9. Contributory Conduct Reduction

If the employee contributed to their dismissal through misconduct or poor behaviour, tribunals may reduce compensation.

Examples include:

• Serious misconduct
• Breach of company policies
• Failure to follow reasonable instructions

Reductions can apply to both basic and compensatory awards.

10. Set-Off and Mitigation of Loss

Tribunals require claimants to mitigate their losses after dismissal.

This means:

• Actively seeking alternative employment
• Avoiding unnecessary financial loss

Any earnings from new employment are deducted from compensation.

How Tribunal Compensation Is Calculated

Tribunals assess compensation based on:

• Actual financial loss supported by evidence
• Future loss of earnings (if applicable)
• Employment prospects and job market conditions
• Duration of unemployment
• Efforts made to mitigate loss

Each case is assessed individually based on fairness and evidence.

Time Limits Affecting Remedies

Remedies are only available if the claim is brought within strict time limits:

• Usually three months less one day from dismissal
• Mandatory ACAS Early Conciliation required before filing

Failure to comply with time limits prevents any remedy being awarded.

Evidence Required for Remedies

To secure remedies, claimants typically need:

• Payslips and P60s
• Employment contract
• Evidence of benefits lost
• Job application records
• Medical or financial records (where relevant)

Tribunals rely heavily on documentary evidence when calculating compensation.

Common Issues in Remedy Hearings

Frequent disputes include:

• Disagreement over loss of earnings calculation
• Whether the employee mitigated loss properly
• Whether compensation should be reduced for contributory fault
• Disputes over bonus or commission entitlement
• Future loss projections

Remedy hearings often involve detailed financial assessment.

Key Takeaways

Tribunal remedies for employment dismissal claims include reinstatement, re-engagement, and financial compensation. The most common outcome is a compensatory award based on actual financial loss, along with a basic award in unfair dismissal cases.

Additional adjustments may apply, including ACAS uplifts, Polkey reductions, and deductions for contributory conduct or mitigation failures. Remedies are strictly evidence-based and aim to compensate rather than punish, reflecting what is fair and just in the circumstances.