How much back wages can you get?

Knowing the real numbers helps you decide whether to push a claim or consider a settlement. There are two amounts to understand: back wages and compensation.

What are back wages?

Back wages are the salary you lost while out of work because of the dismissal. They are capped at 24 months of last-drawn salary for a confirmed employee, and 12 months for a probationer.¹

If you found new work in the meantime, those earnings can be deducted from the award, so back wages fill the gap rather than doubling your income during the dispute.

What is compensation in lieu of reinstatement?

The claim under Section 20 formally asks for reinstatement, getting your job back. In practice, the Industrial Court can order compensation instead, especially where trust has broken down.

That compensation is commonly discussed using a guideline of around one month of salary for each completed year of service, though it remains a guideline, not a fixed right.²

Is either amount promised to me?

No. The law sets a ceiling, not a promise.

Your employer carries the burden of proving there was just cause for your dismissal, but the actual amount still depends on the Industrial Court’s assessment of your specific facts.³

Does settling instead change the numbers?

A settlement reached at conciliation, or through direct negotiation, replaces a court award with an agreed figure. It can be lower than the statutory cap, traded for certainty and a faster outcome.

Use the cap and the guideline above as reference points when you judge an offer.

What should I do before estimating my own figure?

Gather your last-drawn salary, your exact start and end dates, and whether you were confirmed or still on probation. These three facts decide how the cap applies to you.

From there, an independent lawyer can measure your facts against the caps and guideline above and, if you want to pursue it, act on reinstatement, compensation or a settlement.