Employment Rights Act 1996 s.118 – General

(1)^F801. . .Where a tribunal makes an award of compensation for unfair dismissal under section 112(4) or 117(3)(a) the award shall consist of—

(a)a basic award (calculated in accordance with sections 119 to 122 and 126), and

(b)a compensatory award (calculated in accordance with sections 123, 124, [^F802124A and 126^F802] ).

^F803 (2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F803 (3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)^F804. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cases considering section 118 13

Mohammed Shazan Chaudhry v Paperchase Products Limited & Anor

[2025] EAT 181 · 10 December 2025Interprets

The court held that section 118 describes the two components of a tribunal award but does not itself calculate the basic award. Its reference in the statutory definition supports reading a basic award as an award made under the unfair-dismissal scheme. (see paras [64]; [71])

Oxford Health NHS Foundation Trust v Laakkonen & Ors

[2013] UKEAT 0536_12_0103 · 1 March 2013Interprets

A compensation award consists of a basic award and a compensatory award. Read with section 112(4), this meant that neither award could accompany the reinstatement orders.

Nicolson Highlandwear Ltd v Nicolson

[2010] UKEAT 0058_09_2306 · 23 June 2010Interprets

The statutory unfair dismissal provisions did not support treating a bare declaration of unfair dismissal as an available remedy.

Gab Robins (UK) Ltd v Triggs[2008] EWCA Civ 17 · 30 January 2008
Melia v Magna Kansei Ltd.[2005] EWCA Civ 1547 · 4 November 2005
National Westminster Bank Plc v Parry[2004] EWCA Civ 1563 · 1 November 2004
Friend v Civil Aviation Authority[2001] EWCA Civ 1204 · 18 July 2001
NSL Ltd v Dean Bean[2026] EAT 132 · 15 September 2026
Optimum Group Services Plc v Muir[2012] UKEAT 0036_12_0911 · 9 November 2012
Cartwright v Kings College London[2012] UKEAT 565_11_3004 · 30 April 2012
HM Inspector of Taxes v Clayton[2004] EWHC 898 (Ch) · 29 April 2004

2 more judgments, and what each says about section 118, are in the case-law panel in the full Act.

Amendments and notes

5 notes from legislation.gov.uk

Amendments

F801Words in s. 118(1) repealed (25.10.1999) by 1999 c. 26, s. 44, Sch. 9(11); S.I. 1999/2830, art. 2(3), Sch. 2 Pt. I
F802Words in s. 118(1)(b) substituted (1.10.2004) by Employment Act 2002 (c. 22), ss. 53, 55(2), Sch. 7 para. 38; S.I. 2004/2185, art. 2
F803S. 118(2)(3) repealed (25.10.1999) by 1999 c. 26, ss. 33(1)(a), 44, Sch. 9(10); S.I. 1999/2830, art. 2(1)(3), Sch. 1 Pt. I, Sch. 2 Pt. I (with Sch. 3 para. 8)
F804S. 118(4) repealed (1.11.2004) by Employment Act 2002 (c. 22), ss. 54, 55(2), Sch. 8; S.I. 2004/2822, art. 2(b)

Modifications

C137S. 117-127A applied (with modifications) (2.7.1999) by S.I. 1999/1548, reg. 3