The employment tribunal process can be a daunting experience for employees who believe they have been unfairly dismissed from their job. However, knowing what types of compensation may be awarded by the tribunal can help employees prepare for their case and understand what they may be entitled to. In this article, we will discuss the different types of employment tribunal awards for unfair dismissal and what factors may affect the amount awarded.
Unfair dismissal occurs when an employee is dismissed from their job in a way that is considered to be unfair or unjust. This may include being dismissed without proper notice, being dismissed for discriminatory reasons, or being dismissed for exercising their legal rights, such as whistleblowing or taking parental leave. In these cases, an employee may choose to bring a claim against their employer to an employment tribunal to seek compensation for the unfair dismissal.
When an employee successfully proves their case of unfair dismissal, the employment tribunal may award them with compensation. There are two main types of compensation that may be awarded: compensatory awards and basic awards. Compensatory awards are designed to reimburse the employee for any financial losses they have incurred as a result of the dismissal. This may include lost wages, future loss of earnings, and any benefits or bonuses that the employee would have received if they had not been unfairly dismissed.
Basic awards, on the other hand, are a set amount of compensation that is awarded based on the employee’s age, length of service, and pay. The maximum amount of a basic award is currently £16,320, but this amount may be adjusted annually by the government. Basic awards are intended to provide a minimum level of compensation for the unfair dismissal, regardless of the financial losses suffered by the employee.
In addition to compensatory and basic awards, the employment tribunal may also award additional amounts of compensation in certain cases. For example, if the employee can prove that they were dismissed for discriminatory reasons, the tribunal may award them with a sum for injury to feelings. This amount is intended to compensate the employee for the emotional distress and humiliation caused by the discrimination.
Other additional awards may include a statutory redundancy payment, which is a set amount based on the employee’s age, length of service, and pay. The tribunal may also award the employee with a protective award, which is a sum of money awarded if the employer has failed to consult with the employee before making them redundant. These additional amounts of compensation are intended to provide further redress for the unfair dismissal and any resulting financial losses.
When determining the amount of compensation to award for unfair dismissal, the employment tribunal will take into account a variety of factors. These may include the employee’s length of service, age, pay, and future job prospects. The tribunal will also consider whether the employee contributed to their dismissal in any way, such as through misconduct or poor performance.
It is important for employees to be aware that there are limits on the amount of compensation that can be awarded for unfair dismissal. The compensatory award is currently capped at £88,519 or 52 weeks’ gross pay, whichever is lower. This cap is intended to prevent excessive awards and ensure that compensation is fair and proportionate to the losses suffered by the employee.
In conclusion, understanding employment tribunal awards for unfair dismissal can help employees navigate the process and prepare for their case. By knowing the types of compensation that may be awarded and the factors that may affect the amount awarded, employees can make informed decisions about whether to bring a claim against their employer. While the tribunal process may be challenging, the potential for compensation for unfair dismissal can provide important redress for employees who have been wrongfully dismissed from their job.