(1)In section 73 of the 1978 Act (calculation of basic award) after subsection (4) there shall be inserted—
“(4A)Where the dismissal is to be regarded as unfair by virtue of section 58 or 59(a), the amount of the basic award (before any reduction under the following provisions of this section) shall not be less than £2,000.
(4B)The Secretary of State may by order increase or further increase the minimum award provided for by subsection (4A), but no order shall be made under this subsection unless a draft of the order has been laid before Parliament and approved by a resolution of each House of Parliament.”.
(2)The following provisions of section 73, namely—
(a)subsection (7) (reduction of award where complainant contributed to his own dismissal, except in cases of redundancy), and
(b)in subsection (7B) (reduction of award where justified by complainant's conduct, other than conduct taken into account under subsection (7)) the words from " other " to " subsection (7) ",
shall cease to have effect; and after subsection (7B) there shall be added—
“(7C)Subsection (7B) shall not apply where the reason or principal reason for the dismissal was that the employee was redundant unless the dismissal is to be regarded as unfair by virtue of section 59(a), and in that event shall apply only to so much of the basic award as is payable because of subsection (4A).”.