Severance payments in the United Kingdom

An employee who has the required length of service and brings a successful claim for unfair dismissal may also be awarded a compensation payment. This will consist of:

• A basic award (calculated in the same way as SRP but only payable if the employee has not already received this).
• A possible compensatory award based on an employee’s actual and/or potential future financial loss. This is currently capped at the lower of GB£80,541, or 52 weeks’ actual gross pay at the time of dismissal.