When an employee has been unfairly dismissed from their job, they may choose to take their case to an employment tribunal to seek justice. In the UK, unfair dismissal is a claim that can be brought against an employer who has wrongfully terminated an employee’s contract. If successful, the employee may be entitled to compensation in the form of an employment tribunal award.
employment tribunal awards for unfair dismissal can vary greatly depending on the circumstances of the case. The tribunal will take into account factors such as the length of the employee’s service, the reason for dismissal, and the impact it has had on the employee. In some cases, the tribunal may also consider the conduct of both parties leading up to the dismissal.
There are two types of compensation that can be awarded in cases of unfair dismissal: basic awards and compensatory awards. The basic award is calculated based on the employee’s age, length of service, and weekly earnings. It is capped at a maximum of £16,140 as of April 2021. The compensatory award, on the other hand, is designed to compensate the employee for any loss of earnings they have suffered as a result of the unfair dismissal. There is no upper limit on the compensatory award, but it is subject to a cap of one year’s salary or £89,493 as of April 2021, whichever is lower.
In addition to financial compensation, the tribunal may also make a reinstatement or re-engagement order if they believe it is appropriate. Reinstatement involves the employee being placed back in their former position as if they had never been dismissed. Re-engagement, on the other hand, involves the employee being placed in a different job within the same company. However, reinstatement and re-engagement orders are rare, as they require both parties to agree to them and may not always be practical.
It is important to note that not all successful unfair dismissal claims will result in a financial award. In some cases, the tribunal may issue a declaration that the dismissal was unfair and order the employer to reinstate or re-engage the employee. However, the employee will not receive any financial compensation in these cases.
employment tribunal awards for unfair dismissal are intended to compensate the employee for the loss they have suffered as a result of the unfair dismissal. This loss can include loss of earnings, loss of benefits, loss of pension contributions, and loss of future earnings. The tribunal will take all of these factors into account when calculating the amount of compensation to award.
In some cases, the tribunal may also award additional compensation if the employer has acted in a particularly egregious manner. This is known as a “Polkey deduction,” named after the case of Polkey v AE Dayton Services Ltd in 1988. A Polkey deduction can be made if the tribunal believes that even if the employer had followed a fair procedure, the employee would still have been dismissed eventually. This deduction can reduce the amount of compensatory award the employee receives.
employment tribunal awards for unfair dismissal can have a significant impact on both the employee and the employer. For the employee, it can provide them with a sense of justice and compensation for the wrongdoing they have suffered. For the employer, it can result in financial penalties and damage to their reputation.
In conclusion, employment tribunal awards for unfair dismissal play a crucial role in ensuring that employers treat their employees fairly and lawfully. By providing compensation to employees who have been wrongfully dismissed, the tribunal aims to uphold employment rights and prevent future misconduct in the workplace. If you believe you have been unfairly dismissed, it is important to seek legal advice and consider bringing a claim to the employment tribunal to seek justice.