What is a remedy hearing in an employment tribunal?

A remedy hearing is the second stage of an employment tribunal case where a claim has succeeded. The merits have been decided in favour of the claimant; now the tribunal needs to decide what compensation should be awarded. Understanding what happens at a remedy hearing, what evidence matters and how to prepare can significantly affect the financial outcome.

This guide explains how remedy hearings work, what compensation is available and how to prepare your case.

How the case reaches a remedy hearing

A typical employment tribunal case follows this path:

• Claim issued
• Response filed
• Preliminary hearings and case management
• Liability hearing (decides whether the claim succeeds)
• If liability is decided in the claimant's favour, a remedy hearing follows

In some cases the liability and remedy hearings are combined. In others, they are listed separately. Larger or more complex cases usually have separate remedy hearings.

The types of compensation

Basic award

For unfair dismissal claims, the basic award is calculated using a formula based on the claimant's age, length of service and weekly pay. It mirrors the statutory redundancy payment.

Compensatory award

The compensatory award is the substantive financial loss the claimant has suffered. It includes:

• Past lost earnings (from dismissal to hearing)
• Future lost earnings (from hearing onwards)
• Loss of pension
• Loss of benefits
• Loss of statutory rights (a small set sum)
• Reasonable expenses incurred

There is a statutory cap on the compensatory award for unfair dismissal (currently 52 weeks' pay or a higher cap that changes annually). The cap does not apply to discrimination claims.

Injury to feelings

For discrimination claims, the tribunal can award compensation for injury to feelings. The Vento bands set indicative ranges:

• Lower band (less serious cases)
• Middle band
• Upper band (most serious cases)

The bands are updated periodically and increase with inflation.

Aggravated damages

Available in discrimination cases where the conduct of the respondent has been particularly aggravating.

Personal injury damages

Where the respondent's conduct has caused a psychiatric injury, the tribunal can award damages similar to those a civil court would award.

Interest

Interest is awarded on injury to feelings and personal injury awards in discrimination cases, and on past financial loss.

Uplift for failure to comply with ACAS Code

Where the respondent has failed unreasonably to comply with the ACAS Code of Practice, the award can be increased by up to 25%.

Penalty award

In limited circumstances, the tribunal can impose an additional financial penalty on a respondent who has acted with aggravating features.

The structure of a remedy hearing

Opening

The tribunal confirms what was decided at the liability hearing and identifies the issues for remedy.

Evidence

The claimant usually gives evidence first about their loss. The respondent may give evidence in response (for example, about job opportunities the claimant should have taken).

Cross-examination

Each party is cross-examined on their evidence.

Submissions

Each party makes submissions on the amount of compensation.

Decision

The tribunal may give its decision on the day or reserve it for later.

The Schedule of Loss

The Schedule of Loss is the central document at a remedy hearing. It sets out the claimant's claim for compensation with detailed calculations.

A well-prepared Schedule of Loss covers:

• Past loss of earnings (with calculation methodology)
• Future loss of earnings (with assumptions about future employment)
• Loss of pension (often the most complex element)
• Loss of other benefits (private healthcare, car, bonus)
• Injury to feelings (with reference to Vento bands)
• Personal injury if applicable
• Aggravated damages if applicable
• Interest calculations
• Grossing up where applicable

Past loss of earnings

Past loss is calculated from the date of dismissal to the date of the remedy hearing. For each pay period, the claimant calculates:

• What they would have earned at the respondent
• What they actually earned in mitigation employment
• The difference, which is the loss for that period

Net figures are used (after tax and national insurance), though larger amounts may need to be "grossed up" to allow for tax on the award.

Future loss of earnings

Future loss is harder to calculate because it depends on what would have happened in future. The tribunal considers:

The claimant's prospects of finding equivalent work

Has the claimant found similar employment? If not, why not? When are they likely to?

The likely length of the loss

How long until the claimant returns to equivalent earnings? This can range from months to years.

The wider job market

Local employment conditions, the availability of similar roles, the claimant's skills and experience.

Specific evidence

Job applications made, interviews attended, training undertaken, medical evidence of any continuing impact.

Loss of pension

Pension loss is one of the most technical elements. The two main approaches are:

Simple approach

Calculate the lost employer contributions to the pension over the period of loss.

Substantial loss approach

Use the Ogden Tables or similar to calculate the present value of the future pension entitlement that has been lost. This is appropriate for defined benefit pensions or where the loss is significant.

The Tribunal Pension Loss Guidance provides a framework for assessing pension loss in different scenarios.

Mitigation

The claimant must take reasonable steps to mitigate their loss by looking for new work. Failure to mitigate reduces the award. The respondent may argue:

• The claimant did not apply for enough jobs
• The claimant turned down reasonable offers
• The claimant could have started self-employment
• The claimant did not register with appropriate agencies

Claimants should document their job search carefully: applications made, responses received, interviews attended.

Injury to feelings in discrimination cases

The Vento bands provide indicative awards. The tribunal will consider:

The seriousness of the conduct

One-off incidents are usually in the lower band; sustained patterns in the upper.

The impact on the claimant

Evidence of the emotional impact, often supported by medical evidence in serious cases.

The duration of the conduct

Longer-running discrimination usually attracts higher awards.

The aggravating features

Public humiliation, malice, or specific aggravating circumstances can push the award higher.

Evidence to bring to a remedy hearing

Financial documents

Payslips from the respondent (showing what was being earned), payslips from any new employment, P60s, contracts.

Job search evidence

Records of applications, interviews, rejections, training undertaken.

Pension documents

Statements showing the position with the respondent and any new pension arrangements.

Medical evidence

Where injury to feelings or personal injury is claimed.

Updated Schedule of Loss

The Schedule should be updated close to the hearing to reflect current figures.

The respondent's approach

At a remedy hearing, the respondent will usually:

• Challenge the level of future loss claimed
• Argue that mitigation has not been adequate
• Challenge the duration of any continuing loss
• Push for awards within the lower bands where applicable
• Challenge any aggravated or personal injury claims

Settlement before remedy

Many cases settle between liability and remedy. The respondent may prefer certainty to a contested remedy hearing. The claimant may prefer a settled amount to the risk and stress of further proceedings.

Settlement at this stage often produces a result somewhere between the parties' positions on remedy. Both sides can usually predict the range of likely outcomes.

Common mistakes

Inadequate Schedule of Loss

A vague or incomplete Schedule undermines the claim. Detail and clear calculations matter.

Poor evidence of job search

Without records of job applications and other mitigation, the tribunal may infer inadequate mitigation.

Failing to update the Schedule

The Schedule should reflect the position at the date of the hearing, not the date of the original claim.

Inadequate medical evidence

For significant injury to feelings or personal injury claims, medical evidence usually supports the claim.

Unrealistic future loss

Claims for many years of future loss usually require strong evidence. Tribunals are cautious about long-term loss.

When to take legal advice

Remedy hearings can determine awards ranging from a few thousand pounds to many tens of thousands. The work involved in preparing properly is significant. Specialist barrister representation is often a worthwhile investment.

A direct access barrister with employment law experience can prepare the Schedule of Loss, advise on the evidence needed and represent you at the hearing. For unfair dismissal claims in particular, our guide on unfair dismissal covers the broader picture.

Get expert advice without instructing a solicitor

If you would like a specialist barrister to look at your employment matter, we can usually arrange a fixed-fee quote within 24 hours. There is no obligation at any stage and the initial enquiry is free. Submit your case and our team will be in touch.