Employment Rights Act 1996, section 227

Maximum amount

Part XIV Interpretation

(1)For the purpose of calculating—

[F1111 (zza)an award of compensation under section 63J(1)(b),F1111]

[F1112 (za)an award of compensation under section 80I(1)(b),F1112]

(a)a basic award of compensation for unfair dismissal,

(b)an additional award of compensation for unfair dismissal,

[F1113 (ba)an award under section 112(5), orF1113]

(c)a redundancy payment,

the amount of a week’s pay shall not exceed [F1114£751F1114] .

F1115 (2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1115 (3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F1115 (4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in section 227 3

basic award of compensation for unfair dismissal

“basic award of compensation for unfair dismissal” shall be construed in accordance with section 118,

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

“redundancy payment” has the meaning given by Part XI,

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

“week”—

(a)

in Chapter I of this Part means a week ending with Saturday, and

(b)

otherwise, except in sections 27C, 75F, 75H, 80A, 80B , 80EA , 80EF , 80J and 86 and paragraph 11 of Schedule A1 , means, in relation to an employee whose remuneration is calculated weekly by a week ending with a day other than Saturday, a week ending with that other day and, in relation to any other employee, a week ending with Saturday.

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

Cases considering section 227 5

Fitzgerald v University of Kent At Canterbury

[2004] EWCA Civ 143 · 17 February 2004

The judgment confirms that the reference in section 97(2) was obsolete because section 227(3) had been repealed in 1999, leaving no operative effect. (see para [9])

Duniec v Travis Perkins Trading Company Ltd

[2014] UKEAT 0482_13_1103 · 11 March 2014

Section 227(3) is one of the limited purposes for which section 97(2) extends the effective date of termination. (see para [12])

Tameside Hospital NHS Foundation Trust v Mylott

[2010] UKEAT 0399_10_1304

The Tribunal awarded the statutory maximum of one week’s pay for loss of the right not to be unfairly dismissed and statutory notice rights. (see para [78])

2 more judgments, and what each says about section 227, are in the case-law panel in the full Act.

Amendments and notes

12 notes from legislation.gov.uk

Amendments

  1. F1111S. 227(1)(zza) inserted (6.4.2010 for certain purposes and otherwise prosp.) by Apprenticeships, Skills, Children and Learning Act 2009 (c. 22), ss. 40, 269(4), Sch. 1 para. 9; S.I. 2010/303, art. 4, Sch. 3 (with arts. 8-14) (as amended by S.I. 2010/1151, art. 22) text inserted prospectively or the amendment may be in effect for limited purposes, see the commentary.
  2. F1112S. 227(1)(za) inserted (6.4.2003) by Employment Act 2002 (c. 22), s. 53, Sch. 7 para. 47(2); S.I. 2002/2866, art. 2(3), Sch. 1 Pt. 3
  3. F1113S. 227(1)(ba) substituted (1.11.2004) for word by Employment Act 2002 (c. 22), ss. 53, 55(2), Sch. 7 para. 47(3); S.I. 2004/2822, art. 2(a)
  4. F1114Sum in s. 227(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)
  5. F1115S. 227(2)-(4) repealed (17.12.1999) by 1999 c. 26, ss. 36(1)(3), 44, Sch. 9(10); S.I. 1999/3374, art. 2(b)(c), Sch.

Modifications

  1. C255Ss. 226-229 applied (with modifications) (4.3.1998) by S.I. 1998/192, reg. 37(1)
  2. C256Ss. 220-228 applied (6.4.2006 with application in accordance with reg. 21(1) of the amending S.I.) by The Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246), regs. 1(2), 16(4) (with reg. 21(5))
  3. C257S. 227(1): power to amend conferred (17.12.1999) by 1999 c. 26, s. 34(1)(e); S.I. 1999/3374, art. 2(a)
  4. C258S. 227(1) applied in part (1.10.2006) by The Employment Equality (Age) Regulations 2006 (S.I. 2006/1031), regs. 1(1), 47, Sch. 6 para. 11(5) (with regs. 44-46, Sch. 7)
  5. C259S. 227(1) applied in part (1.10.2006) by The Employment Equality (Age) Regulations 2006 (S.I. 2006/1031), regs. 1(1), 47, Sch. 6 para. 12(5) (with regs. 44-46, Sch. 7)
  6. C260S. 227(1) applied (6.4.2010) by The Employee Study and Training (Procedural Requirements) Regulations 2010 (S.I. 2010/155), reg. 17(5)
  7. C261S. 227(1)(c) excluded (4.3.1998) by S.I. 1998/192, reg. 37(1)