When an employee feels they have been unfairly dismissed from their job, they have the option to seek justice through an employment tribunal. These tribunals are independent bodies that have the authority to hear cases related to employment disputes, including unfair dismissal claims. If a tribunal determines that an employee has been unfairly dismissed, they have the power to award compensation to the employee. In this article, we will explore the process of employment tribunal awards for unfair dismissal and the factors that can influence the amount of compensation awarded.
Unfair dismissal occurs when an employer terminates an employee’s contract of employment in a way that is considered to be wrongful or unjust. This can include dismissing an employee without following the proper procedures, such as giving the employee a fair reason for dismissal and allowing them the opportunity to appeal the decision. Unfair dismissal can also occur if an employee is dismissed for reasons that are deemed to be discriminatory or because they have exercised their rights, such as taking time off for maternity leave or blowing the whistle on illegal practices in the workplace.
When an employee believes they have been unfairly dismissed, they can make a claim to an employment tribunal. The first step in this process is usually to notify the Advisory, Conciliation and Arbitration Service (ACAS), an independent organization that provides advice and support to both employees and employers. ACAS will then typically attempt to facilitate a settlement between the two parties through a process known as early conciliation. If a settlement cannot be reached, the employee can proceed with their claim to the employment tribunal.
At the employment tribunal, both the employee and the employer will have the opportunity to present their case and provide evidence to support their arguments. The tribunal will consider all of the evidence presented to them and make a decision on whether the dismissal was fair or unfair. If the tribunal determines that the dismissal was unfair, they will then consider what compensation, if any, should be awarded to the employee.
The amount of compensation awarded in cases of unfair dismissal can vary depending on a number of factors. The tribunal will take into account the employee’s length of service, age, salary, and the circumstances surrounding the dismissal. They will also consider whether the employee contributed to their dismissal in any way, such as through misconduct or poor performance. In cases where the dismissal was particularly egregious or the employee has suffered exceptional losses as a result of the dismissal, the tribunal may award additional compensation known as a “Polkey deduction” or “Vento bands”.
A Polkey deduction is a reduction in the compensation awarded to an employee in cases where it is likely that the employee would have been dismissed anyway, even if the proper procedures had been followed. This deduction is intended to reflect the likelihood that the employee would have lost their job regardless of the unfair dismissal. The amount of the deduction will depend on the circumstances of the case and how likely it is that the dismissal would have occurred lawfully.
Vento bands are a set of guidelines used by employment tribunals to determine the amount of compensation awarded to employees who have been unfairly dismissed. The bands are updated periodically to reflect changes in inflation and other economic factors. As of 2021, the bands are as follows:
– Lower band (for less serious cases of unfair dismissal): £900 to £9,100
– Middle band (for cases with aggravating factors or where the dismissal was particularly distressing): £9,100 to £27,400
– Upper band (for the most serious cases of unfair dismissal): £27,400 to £45,600
In addition to these bands, the tribunal may also award additional compensation for financial losses incurred as a result of the dismissal, such as loss of earnings, benefits, or future career prospects. They may also consider awards for injury to feelings if the employee has suffered emotional distress or humiliation as a result of the dismissal.
Overall, employment tribunal awards for unfair dismissal can vary widely depending on the circumstances of each case. Employees who have been unfairly dismissed should seek legal advice and support to help them navigate the complex process of making a claim to the tribunal. By understanding the factors that can influence the amount of compensation awarded, employees can be better prepared to seek the justice they deserve.