Employment tribunals are an essential part of the UK legal system, providing employees with a way to seek justice if they believe they have been unfairly treated by their employer. One of the most common reasons for employees to bring a claim to an employment tribunal is unfair dismissal. When an employment tribunal finds that an employee has been unfairly dismissed, they may award the employee compensation to make up for their losses. In this article, we will explore the types of awards that employment tribunals can make for unfair dismissal cases.
Unfair dismissal occurs when an employee is dismissed from their job in a way that is not allowed by law. This could be due to reasons such as discrimination, whistleblowing, or the employee asserting their legal rights. If an employment tribunal finds that an employee has been unfairly dismissed, they have the power to award the employee compensation. The amount of compensation awarded will depend on a variety of factors, including the employee’s length of service, the reason for dismissal, and the impact of the dismissal on the employee’s financial and emotional well-being.
There are two types of compensation that can be awarded in unfair dismissal cases: the basic award and the compensatory award. The basic award is calculated based on the employee’s age, length of service, and weekly pay, up to a maximum of £16,320. The compensatory award, on the other hand, is calculated based on the financial losses that the employee has suffered as a result of their dismissal, such as loss of earnings and benefits. There is no upper limit on the compensatory award, but it is subject to a cap which is currently set at £89,493 or 52 weeks’ gross pay, whichever is lower.
In addition to compensatory awards, employment tribunals can also make awards for injury to feelings in cases of discrimination. These awards are meant to compensate the employee for the emotional distress caused by the discriminatory treatment they have experienced. The amount of the award will depend on the severity of the discrimination and its impact on the employee’s well-being.
It is important to note that employment tribunals have the discretion to increase or decrease the amount of compensation awarded in unfair dismissal cases. This can happen if the tribunal believes that either party has acted unreasonably in the course of the proceedings. For example, if the employer has failed to follow proper procedures when dismissing the employee, the tribunal may increase the compensation awarded to the employee as a way of penalizing the employer for their misconduct.
In some cases, employment tribunals may also award reinstatement or re-engagement to unfairly dismissed employees. Reinstatement means that the employee is reinstated in their former role as if the dismissal had never occurred. Re-engagement, on the other hand, means that the employee is re-employed in a different role within the same company. These remedies are rare, however, as they require the cooperation of both the employee and the employer.
In conclusion, employment tribunal awards for unfair dismissal can vary widely depending on the circumstances of each case. Employees who believe they have been unfairly dismissed should seek legal advice as soon as possible to understand their rights and options for seeking redress. By understanding the types of awards that employment tribunals can make in unfair dismissal cases, employees can better prepare themselves for the legal process and ensure that they receive fair compensation for their losses.