Employment Rights Act 1996, section 120

Basic award: minimum in certain cases

Part X Unfair dismissal

(1)The amount of the basic award (before any reduction under section 122) shall not be less than [F807£9,157F807] where the reason (or, if more than one, the principal reason)—

(a)in a redundancy case, for selecting the employee for dismissal, or

(b)otherwise, for the dismissal,

is one of those specified in section 100(1)(a) and (b), [F808101A(d),F808] 102(1) or 103.

F809 (1A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F809 (1B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F810 (1C)Where an employee is regarded as unfairly dismissed by virtue of section 104F (blacklists) (whether or not the dismissal is unfair or regarded as unfair for any other reason), the amount of the basic award of compensation (before any reduction is made under section 122) shall not be less than £5,000.F810]

F811 (2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in section 120 2

redundancy case

(9) In this Part “redundancy case” means a case where paragraphs (a) and (b) of subsection (1) of this section are satisfied.

Defined in s.105(7N) · see it in the full Act
employee

(1) In this Act “employee” means an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment.

Defined in s.230(1) · see it in the full Act

Cases considering section 120 4

Mohammed Shazan Chaudhry v Paperchase Products Limited & Anor

[2025] EAT 181 · 10 December 2025

The court identified section 120 as a provision that may affect the tribunal's calculation of a basic award, reinforcing that its amount cannot be fixed without an award. (see para [71])

King v Royal Bank Of Canada Europe Ltd

[2011] UKEAT 0333_10_1810 · 18 October 2011

Applies the provision as the basis for the basic award following the admitted automatically unfair dismissal. (see para [24])

Lambert v Vicomte Bernard De Romanet Ltd

[2011] UKEAT 0501_10_1803 · 18 March 2011

The Tribunal awarded a basic award representing four weeks’ gross pay. The provision was applied to make that basic award despite the nil compensatory award (see paras [10]; [19]).

1 more judgment, and what each says about section 120, are in the case-law panel in the full Act.

Amendments and notes

7 notes from legislation.gov.uk

Amendments

  1. F807Sum in s. 120(1) substituted (6.4.2026) by The Employment Rights (Increase of Limits) Order 2026 (S.I. 2026/310), art. 1(2), Sch. (with art. 4)
  2. F808Words in s. 120(1) substituted (1.10.1998) by S.I. 1998/1833, reg. 32(5)
  3. F809S. 120(1A)(1B) omitted (6.4.2011) by virtue of The Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011 (S.I. 2011/1069), reg. 3(7) (with regs. 5-7, 9)
  4. F810S. 120(1C) inserted (2.3.2010) by The Employment Relations Act 1999 (Blacklists) Regulations 2010 (S.I. 2010/493), reg. 12(6)
  5. F811S. 120(2) repealed (17.12.1999) by 1999 c. 26, ss. 36(1)(a)(3), 44, Sch. 9(10); S.I. 1999/3374, art. 2(b)(c), Sch.

Modifications

  1. C139S. 117-127A applied (with modifications) (2.7.1999) by S.I. 1999/1548, reg. 3
  2. C140S. 120(1): power to amend conferred (17.12.1999) by 1999 c. 26, s. 34(1)(b); S.I. 1999/3374, art. 2(b)