Employment Rights Act 1996, section 126

Acts which are both unfair dismissal and discrimination

Part X Unfair dismissal

(1)This section applies where compensation falls to be awarded in respect of any act both under—

(a)the provisions of this Act relating to unfair dismissal, and

[F827 (b)the Equality Act 2010.F827]

(2)An [F828employment tribunalF828] shall not award compensation under [F829either of those ActsF829] in respect of any loss or other matter which is or has been taken into account under [F830the otherF830] by the tribunal (or another [F828employment tribunalF828] ) in awarding compensation on the same or another complaint in respect of that act.

Definitions used in section 126 2

act

“act” and “action” each includes omission and references to doing an act or taking action shall be construed accordingly,

Defined in s.235(1) · see it in the full Act
employment

(5) In this Act “employment”—

(a)in relation to an employee, means (except for the purposes of section 171) employment under a contract of employment, and

(b)in relation to a worker, means employment under his contract;

Defined in s.230(5) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act

Cases considering section 126 3

Mohammed Shazan Chaudhry v Paperchase Products Limited & Anor

[2025] EAT 181 · 10 December 2025

The court identified section 126 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])

H Shittu v South London & Maudsley NHS Foundation Trust

[2022] EAT 18 · 13 July 2021Limits

The provision prevented double recovery for the same loss under the unfair-dismissal and discrimination causes of action. The allocation of the pleaded loss between those claims made no difference to the appeal. (see para [38])

Carmelli Bakeries Ltd v Benali

[2013] UKEAT 0616_12_3107 · 31 July 2013

Applied as part of the statutory prohibition on duplicate compensation where the same dismissal is both unfair dismissal and Equality Act victimisation. Applied to indicate that reducing unfair-dismissal compensation may require reconsideration of Equality Act heads of compensation so that the same financial loss is not compensated twice.

What each judgment says about section 126 is in the case-law panel in the full Act.

Amendments and notes

5 notes from legislation.gov.uk

Amendments

  1. F827S. 126(1)(b) substituted (1.10.2010) by Equality Act 2010 (c. 15), ss. 211, 216, Sch. 26 para. 33(2) (with ss. 6(4), 205) (as inserted by The Equality Act 2010 (Consequential Amendments, Saving and Supplementary Provisions) Order 2010 (S.I. 2010/2279), art. 1, Sch. 1 para. 5); S.I. 2010/2317, art. 2(15)(e)(ii) (with art. 15)
  2. F828Words in s. 126(2) substituted (1.8.1998) by 1998 c. 8, s. 1(2)(a) (with s. 16(2)); S.I. 1998/1658, art. 2(1), Sch. 1
  3. F829Words in s. 126(2) substituted (1.10.2010) by Equality Act 2010 (c. 15), ss. 211, 216, Sch. 26 para. 33(3)(a) (with ss. 6(4), 205) (as inserted by The Equality Act 2010 (Consequential Amendments, Saving and Supplementary Provisions) Order 2010 (S.I. 2010/2279), art. 1, Sch. 1 para. 5); S.I. 2010/2317, art. 2(15)(e)(ii) (with art. 15)
  4. F830Words in s. 126(2) substituted (1.10.2010) by Equality Act 2010 (c. 15), ss. 211, 216, Sch. 26 para. 33(3)(b) (with ss. 6(4), 205) (as inserted by The Equality Act 2010 (Consequential Amendments, Saving and Supplementary Provisions) Order 2010 (S.I. 2010/2279), art. 1, Sch. 1 para. 5); S.I. 2010/2317, art. 2(15)(e)(ii) (with art. 15)

Modifications

  1. C147Ss. 117-127A applied (with modifications) (2.7.1999) by S.I. 1999/1548, reg. 3