Being dismissed from your job can be a difficult and stressful experience. If you believe that your dismissal was unfair, you have the right to bring a claim for unfair dismissal to an Employment Tribunal. If the Tribunal finds in your favor, you may be entitled to receive an award to compensate you for your unfair dismissal. In this article, we will discuss what employment tribunal awards for unfair dismissal entail and how they are calculated.
Unfair dismissal occurs when an employee is dismissed from their job in a way that is considered to be harsh, unjust or unreasonable. There are certain reasons for dismissal that are automatically unfair, such as dismissal for whistleblowing, pregnancy or maternity leave, trade union membership, or asserting a statutory right. In these cases, the employee does not need to have been employed for a minimum period to bring a claim for unfair dismissal.
If an employee believes they have been unfairly dismissed, they must first raise a grievance with their employer. If the grievance is not resolved internally, the employee can then proceed to make a claim to an Employment Tribunal. The Tribunal will assess whether the dismissal was fair or unfair based on the circumstances of the case.
If the Tribunal finds that the dismissal was unfair, it will consider making an award to compensate the employee for the loss suffered as a result of the unfair dismissal. The amount of the award will depend on various factors, such as the employee’s length of service, age, salary, and the circumstances of the dismissal.
There are two main components to an employment tribunal award for unfair dismissal: the basic award and the compensatory award. The basic award is calculated based on the employee’s length of service, age, and weekly pay, up to a maximum of £16,140 as of April 2021. The compensatory award is intended to compensate the employee for financial losses resulting from the unfair dismissal, such as lost wages, benefits, and pension contributions.
In addition to the basic and compensatory awards, the Tribunal may also make a separate award for loss of statutory rights. This award is designed to compensate the employee for any loss of statutory rights resulting from the unfair dismissal, such as the right to claim unfair dismissal or redundancy pay.
The maximum compensatory award for unfair dismissal is currently capped at £89,493 or 52 weeks’ gross pay, whichever is lower. However, this cap does not apply in cases of automatic unfair dismissal, such as dismissal for whistleblowing, discrimination, or health and safety reasons.
When calculating the compensatory award, the Tribunal will take into account various factors, such as the employee’s efforts to find alternative employment, their past and future loss of earnings, and any benefits they have received since the dismissal. The Tribunal may also reduce the compensatory award if it believes the employee contributed to their dismissal in some way.
It is important to note that not all employees who bring a claim for unfair dismissal will receive an award. The Tribunal will only make an award if it finds that the dismissal was unfair and that the employee has suffered a financial loss as a result. Employees should seek legal advice before bringing a claim to ensure they have a strong case and understand their chances of success.
In conclusion, employment tribunal awards for unfair dismissal are designed to compensate employees who have been unfairly dismissed from their jobs. The awards are calculated based on the employee’s length of service, age, salary, and the circumstances of the dismissal. Employees who believe they have been unfairly dismissed should seek legal advice and consider bringing a claim to an Employment Tribunal to seek compensation for their loss.