We spoke previously about a basic award covered in a previous article.  Another type of award considered by a tribunal is the compensatory award which sets out to compensate an employee against financial loss that relates to the dismissal this can include loss of benefits and expenses.  Under the compensatory award the maximum an employee can be awarded is £63k.
The Employment Tribunal considers the following:

Wage Loss

From the dismissal date until the tribunal hearing.  Notice given to the employee and claims benefits during this time will be taken into account.

Future Wage Loss

This is mainly guess work on the part of the tribunal as they have to estimate how long they believe the employee will be out of work based on their age, experience and skill demand.  If the employee has a new job that pays the same or more then they will not receive this award, however if the job pays less then an award figure is calculated.

Loss of Perks

This award relates to Health care benefits, company car, etc where a figure is calculated based on the monetary loss of these benefits.

How the employee was dismissed

This involves the way the employee was dismissed that could make it difficult for them to find or receive a new job offer, this mainly happens in close nit communities such as professions. 

Loss of Employment Protection

The tribunal takes into account the fact that the employee has to work for 1 year in a new job to regain protection rights and will calculate the award based upon this.

Loss of Pension Rights

The tribunal follows certain guidelines to calculate a fare compensation figure for any pension rights that have been lost.

Award Deductions

There will also be deductions made from your Compensatory Award which include:

1. Redundancy payments under your contract.
2. Payments made to the employee due to the dismissal.
3. If the employee shares the responsibility for the dismissal deductions will be calculated.
4. Deductions based on the employees willingness to find a new job.  If the employee has made no efforts to find a new job this is considered and penalised.
5. The award will be reduced if the the dismissal was fair however the way it was carried out was unfair.
6. If the employee has or has not given notice of appeal and if the employee has or has not attended can increase or reduce the compensation award.