Compensatory Award

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Compensatory Award - (noun)


In the UK you receive compensation if an employment tribunal decides that you have been unfairly dismissed. This is comprised of a basic award and a compensatory award. The compensatory award compensates the employee for financial loss that is related to the dismissal.


Source: Adapted from WorkSmart
Example of Use: The tribunal decided to reduce the compensatory award as they felt the employee’s actions partly contributed to the dismissal.