Unfair dismissal is a situation where an employee is dismissed from their job in a way that breaches their employment rights. Employees who believe they have been unfairly dismissed can take their case to an employment tribunal to seek compensation for any losses incurred as a result of their dismissal. employment tribunal awards for unfair dismissal are intended to compensate employees for the financial losses they have incurred as a result of their unfair dismissal.
When an employee is successful in their claim for unfair dismissal, the employment tribunal has the power to award compensation to the employee. This compensation can include several different types of awards, including a basic award, compensatory award, and in some cases, a reinstatement or re-engagement order.
The basic award is calculated based on the employee’s age, length of service, and weekly pay. The statutory formula for calculating the basic award is as follows: half a week’s pay for each full year of employment under the age of 22, one week’s pay for each full year of employment between the ages of 22 and 41, and one and a half week’s pay for each full year of employment over the age of 41. The maximum amount of the basic award is currently £16,320.
In addition to the basic award, the employment tribunal may also award a compensatory award to compensate the employee for any financial losses they have suffered as a result of their unfair dismissal. The compensatory award is calculated based on the employee’s actual losses, such as loss of earnings, loss of benefits, and additional expenses incurred as a result of their dismissal. There is no limit to the amount of compensatory award that can be awarded by the employment tribunal, but it is subject to a statutory cap which is currently £89,493 or 52 weeks’ gross pay, whichever is lower.
In cases where the employment tribunal determines that it is appropriate, they may also make an order for reinstatement or re-engagement. Reinstatement involves the employer giving the employee their job back as if they had never been dismissed, while re-engagement involves the employer offering the employee a different job with the same terms and conditions as their previous job. Reinstatement and re-engagement orders are relatively rare, as they require the consent of both the employer and the employee.
It is important to note that employment tribunal awards for unfair dismissal are designed to compensate the employee for their losses, rather than to punish the employer. As such, the awards are intended to be fair and reasonable based on the circumstances of the case. The employment tribunal will take into account factors such as the employee’s length of service, the reason for their dismissal, and the efforts made by both parties to resolve the dispute before it went to tribunal.
In addition to compensation, the employment tribunal may also make recommendations to the employer to prevent similar situations from occurring in the future. These recommendations may include changes to the employer’s policies and procedures, training for managers and employees, or measures to improve communication and conflict resolution within the workplace.
Employers who are found to have unfairly dismissed an employee may also be ordered to pay the employee’s legal costs. This can add to the financial burden of the unfair dismissal claim for the employer, making it even more important for employers to follow proper procedures when dismissing employees.
Overall, employment tribunal awards for unfair dismissal are intended to provide employees with a remedy for unfair treatment by their employer. The awards are designed to compensate employees for their losses, both financial and non-financial, and to encourage employers to act fairly and legally in their treatment of employees. Employees who believe they have been unfairly dismissed should seek legal advice and consider taking their case to an employment tribunal to seek redress for their unfair treatment.