When an employee is unfairly dismissed from their job, they have the right to seek recourse through an employment tribunal. These tribunals have the power to determine if the dismissal was justified or not and can award compensation to the employee if they find in favor of the claimant. In this article, we will explore the process of awarding compensation in cases of unfair dismissal and how employment tribunal awards are calculated.
The first step in seeking compensation for unfair dismissal is to file a claim with the employment tribunal. This claim must be submitted within three months of the date of dismissal, and the tribunal will then assess the merits of the case before deciding whether to proceed to a hearing. During the hearing, both the employer and the employee will have the opportunity to present evidence and call witnesses to support their case.
If the tribunal finds in favor of the employee and determines that the dismissal was unfair, they will then consider what remedy should be awarded. This can include reinstatement, re-engagement, or compensation. In cases where reinstatement or re-engagement is not feasible, the tribunal will typically award compensation to the employee.
The amount of compensation awarded in cases of unfair dismissal can vary depending on a number of factors, including the length of the employee’s service, the reason for the dismissal, and the financial losses incurred as a result of the dismissal. In addition to compensating the employee for their financial losses, the tribunal may also award a basic award, which is based on the employee’s length of service and age.
The basic award is calculated using a formula that takes into account the employee’s age, length of service, and weekly pay. The current maximum amount for the basic award is £16,320, but this figure is subject to change and may be lower in some cases. In addition to the basic award, the tribunal may also award a compensatory award to cover any financial losses suffered by the employee as a result of the dismissal.
The compensatory award is calculated based on the employee’s actual financial losses, including lost wages, benefits, and any other income that they would have received if they had not been unfairly dismissed. There is no upper limit on the amount that can be awarded for a compensatory award, but it is subject to a statutory cap, which is currently set at £89,493.
In some cases, the tribunal may also award an additional award known as a “Polkey award” if they find that the dismissal would have been inevitable even if proper procedures had been followed. This award is meant to compensate the employee for the loss of a fair dismissal process and is typically capped at £13,920.
It is important to note that employment tribunal awards for unfair dismissal are not intended to punish the employer, but rather to compensate the employee for the losses they have suffered as a result of the unfair dismissal. The tribunal will take into account the circumstances of the case and the financial situation of both the employee and the employer when determining the amount of the award.
In conclusion, employment tribunal awards for unfair dismissal play a vital role in ensuring that employees are protected from unjust treatment in the workplace. By understanding how these awards are calculated and what factors are taken into consideration, employees can better advocate for their rights and seek the compensation they deserve in cases of unfair dismissal.