Average Payout For Unfair Dismissal In South Africa

In the case of unfair dismissal, the maximum amount of compensation that can be awarded is 12 months’ salary and 24 months in the case of an automatically unfair dismissal. There is no hard and fast rule when deciding how much compensation will be awarded.


What is the maximum compensation for unfair dismissal in South Africa?

The maximum compensation which may be awarded is capped at a maximum of 12 months remuneration for an ordinary unfair dismissal (e.g., misconduct or incapacity) alternatively, 24 months remuneration for an automatically unfair dismissal (e.g., dismissal due to pregnancy/discrimination or protected disclosure).

What is the average award for unfair dismissal?

Maximum, Median and Average Awards for Unfair Dismissal and Discrimination 2019/20

Unfair Dismissal118,84210,812
Race Discrimination30,3309,801
Sex Discrimination73,61917,420
Disability Discrimination265, 71927,043

How is compensation calculated for unfair dismissal?

Compensation is based on any loss (including loss of earnings, pension and other financial benefits) you suffer as a result of the dismissal or discrimination. It is intended to put you in the position you would have been in had your employer not acted unlawfully, rather than specifically to “punish” the employer.

How much can you sue a company for unfair dismissal?

The compensatory award for unfair dismissal claims is capped at £89,493, or one year’s gross salary, whichever is the lower. The statutory cap does not apply where the dismissal is automatically unfair, for example because employee has made a protected disclosure or asserted a statutory right.

What happens if you win an appeal for unfair dismissal?

We recommend that if an employee appeals against their dismissal, the employer’s policy, or letter acknowledging that appeal, makes it clear that, if successful, it will overturn the dismissal and the employee will be receive all back pay and the benefit of all other terms of their contract of employment.