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Section 124: Limit of compensatory award etc.

Employment Rights Act 1996 · 1996 c. 18View on legislation.gov.uk

Part X: Unfair dismissal — Chapter II: Remedies for unfair dismissal

The amount of—

any compensation awarded to a person under section 117(1) and (2), or
a compensatory award to a person calculated in accordance with section 123,

shall not exceed the amount specified in subsection (1ZA).

The amount specified in this subsection is the lower of—

£118,223, and
52 multiplied by a week's pay of the person concerned.

Subsection (1) shall not apply to compensation awarded, or a compensatory award made, to a person in a case where he is regarded as unfairly dismissed by virtue of section 100, 103A, 105(3) or 105(6A).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

In the case of compensation awarded to a person under section 117(1) and (2), the limit imposed by this section may be exceeded to the extent necessary to enable the award fully to reflect the amount specified as payable under section 114(2)(a) or section 115(2)(d).

Where—

a compensatory award is an award under paragraph (a) of subsection (3) of section 117, and
an additional award falls to be made under paragraph (b) of that subsection,

the limit imposed by this section on the compensatory award may be exceeded to the extent necessary to enable the aggregate of the compensatory and additional awards fully to reflect the amount specified as payable under section 114(2)(a) or section 115(2)(d).

The limit imposed by this section applies to the amount which the employment tribunal would, apart from this section, award in respect of the subject matter of the complaint after taking into account—

any payment made by the respondent to the complainant in respect of that matter, and
any reduction in the amount of the award required by any enactment or rule of law.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.