Glossary

Loss of statutory rights is a specific type of compensation that an Employment Tribunal may award to an employee after a successful claim of either unfair dismissal or constructive unfair dismissal. 

Certain employment law rights – like the right to claim for unfair dismissal and the right to statutory redundancy pay – only apply after two years of continuous service. 

A loss of statutory rights award is usually a small sum. It’s designed to compensate claimants for the fact that, as a result of their dismissal, they have to build up continuous service with a new employer from scratch. 

Awarding a sum for loss of statutory rights is a recognised convention that Employment Tribunal judges follow. There’s no set method or calculation for establishing how much to award. 

The amount tends to be between £300 and £500, depending on the employee’s length of service with the employer at the time they were dismissed. 

The Tribunal may also take into account other factors, such as how quickly they believe the employee will secure new employment.