What type of compensation is calculated based on age and length of service for unfair dismissal?

The correct choice relates to the basic award, which is a type of compensation calculated specifically with regard to the employee’s age and length of service in cases of unfair dismissal. The basic award is intended to provide a foundation for compensation, reflecting the employee's tenure at the company and their age at the time of dismissal. This means that older employees or those with longer service may receive a higher basic award, acknowledging the effects of longer employment and potential challenges in securing new employment.

In contrast, a compensatory award typically focuses on the actual financial losses incurred due to unfair dismissal, such as lost wages and benefits, rather than being a fixed calculation based solely on age and length of service. An additional award may be compensatory in nature but is typically reserved for particular circumstances or egregious conduct, not standard calculations based on age or service length. Severance pay is distinct, as it often relates to benefits provided when an employee is laid off or let go, rather than being directly linked to the circumstances of unfair dismissal.