Unfair dismissal occurs when an employee is fired without a fair reason or without following the correct dismissal procedures. When an employee feels they have been unfairly dismissed, they have the right to take their case to an employment tribunal to seek justice and compensation.
employment tribunal awards for unfair dismissal can vary depending on the circumstances of the case. The tribunal’s main aim is to compensate the employee for any losses suffered as a result of unfair dismissal. Factors such as length of service, salary, age, and the circumstances surrounding the dismissal will all be taken into consideration when deciding on the amount of compensation to be awarded.
One of the most common awards given by employment tribunals for unfair dismissal is compensation for loss of earnings. This compensation is calculated based on the employee’s salary and how long it is expected to take them to find another job. It is intended to cover the financial losses incurred by the employee as a result of being unfairly dismissed.
In addition to compensation for loss of earnings, employment tribunals can also award damages for the employee’s hurt feelings. This is known as a ‘basic award’ and is usually a set amount depending on the employee’s age, length of service, and weekly pay. It can range from a minimum of £900 to a maximum of £8,600.
For cases where the dismissal was particularly harsh or unfair, employment tribunals may also award an ‘enhanced award’. This is designed to punish the employer for their actions and can be up to 25% of the basic award. For example, if the basic award is £4,000, the enhanced award could be up to an additional £1,000.
It is worth noting that there is a cap on the maximum amount of compensation that can be awarded for unfair dismissal. As of April 2021, the maximum compensatory award for unfair dismissal is £89,493, or 52 weeks’ pay – whichever is lower. This means that even if an employee’s losses far exceed this amount, they will not be able to claim more than the maximum cap set by law.
Aside from financial compensation, employment tribunals can also order reinstatement or re-engagement as remedies for unfair dismissal. Reinstatement means that the employee is placed back in their old job as if the dismissal never happened. Re-engagement means that the employee is given a different job within the same company. Both remedies are rare, as they require the employer and employee to work together again after a dispute.
In some cases, the employment tribunal may also order the employer to pay the employee’s legal fees if they are successful in their claim for unfair dismissal. This helps to ensure that the employee is not out of pocket for seeking justice through the tribunal process.
It is important for employees to be aware of their rights and options when it comes to unfair dismissal. Seeking legal advice and representation can greatly improve their chances of success in an employment tribunal and help them secure the compensation they deserve.
Employers should also be aware of their obligations and responsibilities when it comes to dismissing employees. Following correct procedures and treating employees fairly and respectfully can help to prevent unfair dismissal claims and the associated costs and damages.
In conclusion, employment tribunal awards for unfair dismissal can vary greatly depending on the circumstances of the case. Compensation for loss of earnings, damages for hurt feelings, and additional awards such as basic and enhanced awards are all possible outcomes of a successful unfair dismissal claim. Understanding the process and seeking legal advice can help both employees and employers navigate this complex area of employment law.