When an employee feels that they have been unfairly dismissed from their job, they have the option to bring a claim against their employer at an employment tribunal. If the tribunal finds that the dismissal was indeed unfair, they may award the employee compensation. In this article, we will explore the process of obtaining employment tribunal awards for unfair dismissal and what factors are taken into consideration when determining the amount of compensation awarded.
Unfair dismissal occurs when an employee is fired from their job in a way that is considered to be harsh, unreasonable, or without proper justification. This can include being fired for reasons such as discrimination, whistleblowing, or for simply exercising their legal rights. In order to bring a claim for unfair dismissal, the employee must have been employed for a certain amount of time, usually two years, unless the dismissal was linked to a specific issue such as discrimination or whistleblowing.
When an employee decides to take their case to an employment tribunal, they must first go through the early conciliation process, which involves attempting to settle the dispute through the Advisory, Conciliation and Arbitration Service (ACAS). If a settlement cannot be reached, the case will proceed to a tribunal hearing where both parties will present their evidence and arguments.
If the tribunal rules in favor of the employee and finds that the dismissal was unfair, they have the authority to award compensation. The amount of compensation awarded will depend on a number of factors, including the employee’s length of service, age, salary, and the circumstances surrounding the dismissal. There are two types of compensation that can be awarded for unfair dismissal: the basic award and the compensatory award.
The basic award is calculated based on the employee’s length of service, age, and weekly earnings. It is capped at a maximum of £16,320 as of April 2022 and is also subject to a statutory maximum of £544 per week. The compensatory award, on the other hand, is designed to compensate the employee for the financial losses they have suffered as a result of the unfair dismissal. This can include lost wages, benefits, and future earnings, as well as any expenses incurred in finding new employment.
In addition to financial compensation, the tribunal may also order the employer to reinstate or re-engage the employee, although this is rare. Reinstatement involves putting the employee back in their previous position with no loss of pay or benefits, while re-engagement involves offering the employee a different job within the same organization. If reinstatement or re-engagement is not possible or practical, the tribunal may order the employer to pay additional compensation.
When determining the amount of compensation to be awarded for unfair dismissal, the tribunal will consider a number of factors. These can include the employee’s age, length of service, salary, and job prospects, as well as the circumstances surrounding the dismissal and the conduct of both parties during the tribunal proceedings. The tribunal will also take into account any steps that the employee has taken to mitigate their losses, such as looking for new employment.
It is important to note that the compensation awarded for unfair dismissal is intended to be fair and reasonable, and is not meant to punish the employer. The purpose of compensation is to put the employee back in the position they would have been in if they had not been unfairly dismissed. In some cases, the tribunal may also award compensation for injury to feelings, particularly if the dismissal was linked to discrimination or harassment.
In conclusion, employment tribunal awards for unfair dismissal can provide employees with a means of seeking compensation for being unfairly treated by their employer. The amount of compensation awarded will depend on a number of factors, including the employee’s length of service, age, and salary, as well as the circumstances surrounding the dismissal. While the process of obtaining employment tribunal awards for unfair dismissal can be complex, it can provide a remedy for employees who have been unfairly dismissed from their jobs.