Unfair dismissal is a serious issue that can have significant consequences for both employees and employers. It occurs when an employee is dismissed from their job for reasons that are considered to be unjust, unreasonable, or discriminatory. In such cases, employees have the right to bring a claim for unfair dismissal to an employment tribunal.
When an employee is successful in their claim for unfair dismissal, they may be awarded compensation to remedy the financial losses they have suffered as a result of the dismissal. This compensation is known as an employment tribunal award for unfair dismissal. In this article, we will explore the factors that influence the amount of compensation awarded in unfair dismissal cases and provide guidance on how to navigate the employment tribunal process.
There are several factors that employment tribunals take into account when determining the amount of compensation to be awarded in unfair dismissal cases. These factors include the length of the employee’s service with the employer, the employee’s age, their salary, the circumstances surrounding the dismissal, and the impact of the dismissal on the employee’s future job prospects.
In cases of unfair dismissal, employment tribunals have the power to award two types of compensation: the basic award and the compensatory award. The basic award is calculated based on the employee’s length of service, their age, and their weekly salary, up to a maximum of £16,140. The compensatory award, on the other hand, is designed to compensate the employee for losses such as loss of earnings, loss of benefits, and loss of pension contributions. There is no upper limit on the amount of compensatory award that can be awarded, but it is subject to a statutory cap, which is currently set at £89,493 or 52 weeks’ gross pay, whichever is lower.
In some cases, employment tribunals may also award additional compensation known as a “Polkey award” or a “contributory fault deduction”. A Polkey award is made when the tribunal believes that the employee would have been dismissed even if a fair procedure had been followed, so the award is reduced to reflect this. A contributory fault deduction is made when the tribunal believes that the employee’s actions contributed to their dismissal, so the award is reduced to reflect this as well.
It is important to note that in order to be eligible to claim unfair dismissal, employees must have at least two years of continuous service with their employer. However, there are certain exceptions to this rule, such as cases of automatic unfair dismissal (e.g. dismissal for reasons related to pregnancy, maternity leave, or trade union activities) where the length of service requirement does not apply.
Navigating the employment tribunal process can be complex and daunting for employees, which is why it is advisable to seek legal advice and representation from an experienced employment law solicitor. A solicitor can help employees understand their rights, gather evidence to support their claim, and present their case effectively at the tribunal hearing.
In addition to seeking legal advice, employees should also be prepared to negotiate a settlement with their employer before the tribunal hearing takes place. Settlement negotiations can help to avoid the stress and uncertainty of a tribunal hearing, and may result in a quicker resolution for both parties. Employers may be willing to offer a settlement in order to avoid the time and expense of a tribunal hearing, and employees may be able to secure a higher amount of compensation through negotiation.
Overall, employment tribunal awards for unfair dismissal are designed to compensate employees for the financial losses they have suffered as a result of being unfairly dismissed from their job. By understanding the factors that influence the amount of compensation awarded in unfair dismissal cases and seeking legal advice and representation, employees can navigate the tribunal process with confidence and ensure that their rights are protected.
In conclusion, unfair dismissal is a serious issue that can have significant consequences for employees, and employment tribunal awards for unfair dismissal are designed to provide compensation for the financial losses that employees have suffered. By seeking legal advice and representation, negotiating a settlement with their employer, and understanding the factors that influence the amount of compensation awarded in unfair dismissal cases, employees can navigate the tribunal process with confidence and ensure that their rights are protected.