See how back wages are worked out

How the statutory cap works

Back wages awarded by the Industrial Court are generally capped at twenty four months of pay for a confirmed employee, and twelve months for a probationer.¹ This is an upper limit set out in law, not a fixed figure everyone receives.

Your salary level does not stop you from using the Section 20 route at all, since it covers all workmen.²

Work through the illustration

1. Write down your last drawn monthly salary and whether you were confirmed or still on probation when dismissed.

2. Multiply your monthly salary by twenty four if confirmed, or by twelve if a probationer, to see the statutory ceiling that applies to your category.

3. Note that this ceiling is a maximum, and actual awards are often set lower depending on the facts, including how long a claim takes to resolve.

4. Separately note whether reinstatement, rather than money, is something you would want if it were offered, since the court can order either.

5. Keep this figure as a reference point only, useful for a settlement conversation, not as an amount to expect.

What to do with your result

Treat the number you calculated as the outer edge of a range, not a guide to what you will receive, since the Industrial Court decides each case on its own facts.

Read about back wages and compensation and compensation in lieu of reinstatement to see how the two remedies differ.

How a lawyer helps from here

A lawyer looks at your dismissal circumstances alongside this illustration and explains realistically where your case might sit, and whether reinstatement is worth pursuing instead of, or alongside, back wages.