Unfair dismissal win but no compensation: when a claim succeeds but the loss is zero
A former employee won her unfair dismissal claim against Stonewater Ltd but was awarded no compensation because she suffered no financial loss as a result of the dismissal.
1 min read · Last updated 19 May 2026
Case details
- #age-discrimination
- #unfair-dismissal
- #no-compensation
Key facts
- The claimant complained of direct age discrimination and unfair dismissal.
- The age discrimination complaint was dismissed.
- The unfair dismissal complaint succeeded.
- The remedy hearing determined the claimant sustained no loss attributable to the respondent's action.
- No compensation was awarded for unfair dismissal.
Timeline
-
Liability hearing day 1
The liability hearing commenced at Southampton Employment Tribunal by video.
-
Liability judgment
Employment Judge Klimov issued a judgment dismissing the age discrimination claim and upholding the unfair dismissal claim, with compensation to be determined.
-
Remedy hearing
Employment Judge Klimov (sitting alone) held a remedy hearing at Bristol Employment Tribunal and determined no compensation was payable.
The legal issue
The tribunal had to decide whether the former employee was unfairly dismissed and, if so, what compensation she should receive for any loss caused by the dismissal.
The outcome
The tribunal found that the former employee was unfairly dismissed by Stonewater Ltd. However, at the remedy hearing, the tribunal determined that she had not suffered any financial loss as a result of the dismissal. Consequently, no compensation was awarded.
- Unfair dismissal claim: succeeded
- Age discrimination claim: dismissed
- Compensation: £0
Lessons & takeaways
- Winning an unfair dismissal claim does not guarantee compensation; you must prove you suffered a financial loss caused by the dismissal.
- If you have no financial loss (e.g., you quickly found a new job at the same or higher pay), the tribunal may award no compensation even if the dismissal was unfair.
- Keep records of your job search and any income after dismissal to demonstrate loss or lack thereof.
- An unfair dismissal win without compensation can still be a moral victory but offers no financial remedy.
A hollow victory?
Winning an unfair dismissal claim is often seen as a vindication, but this case shows that success at the liability stage does not always lead to a payout. The former employee, representing herself, convinced the tribunal that Stonewater Ltd had unfairly dismissed her. However, when it came to the remedy hearing, she was unable to show that the dismissal had caused her any financial loss.
What the tribunal decided
The tribunal dismissed her complaint of direct age discrimination but upheld the unfair dismissal claim. At the remedy hearing, the tribunal found that the claimant had not sustained any loss attributable to the respondent's actions. As a result, no compensation was awarded. The judgment notes that the claimant was a litigant in person, while Stonewater Ltd was represented by a solicitor.
What this means for similar claims
This case is a reminder that the purpose of compensation in unfair dismissal is to put the employee in the financial position they would have been in had the dismissal not occurred. If the employee has suffered no financial detriment – for example, because they quickly found another job with similar pay – the tribunal may award nothing. Claimants should be prepared to present evidence of their financial losses, including lost earnings, benefits, and pension contributions, as well as any mitigation efforts such as job applications and income from new employment.
Similar cases
Former employee wins unfair dismissal claim against Asda
A former employee succeeded in her unfair dismissal claim against Asda Stores Ltd, but her age discrimination and harassment complaints were dismissed. She was awarded £27,924.06.
Taxi driver's unfair dismissal and discrimination claims dismissed as out of time
A taxi driver who waited over six months to bring his claim after Uber deactivated his account has had his case thrown out by the Nottingham tribunal for being well outside the three-month time limit.
Dog walker with set hours found to be employee: unfair dismissal and age discrimination win
A dog walker who worked set hours for five years was found to be an employee, not a self-employed contractor, and awarded over £11,700 for unfair dismissal and age discrimination.
Redundancy dismissal and victimisation claims fail: law enforcement officer loses tribunal case
A law enforcement officer with four years' service was fairly dismissed by redundancy and his claims of race and age discrimination, harassment, and victimisation were dismissed by the tribunal.