When an employer terminates an employee’s contract without a valid reason or without following the correct procedures, it is considered unfair dismissal. In such cases, the employee has the right to file a claim with an employment tribunal to seek compensation for their unfair dismissal.
employment tribunal awards for unfair dismissal are financial compensations that are awarded to employees who have been unfairly dismissed from their jobs. These awards are meant to compensate the employee for the loss of income and other benefits that they would have received if they had not been unfairly dismissed.
There are several factors that are taken into consideration when determining the amount of compensation to be awarded in unfair dismissal cases. These factors include the length of the employee’s service, their age, the nature of the dismissal, the level of loss suffered by the employee, and any future loss of income.
In the UK, unfair dismissal claims are governed by the Employment Rights Act 1996. According to this act, the maximum amount of compensation that can be awarded for unfair dismissal is £88,519 or 52 weeks’ pay, whichever is lower. This amount is known as the compensatory award.
In addition to the compensatory award, an employment tribunal may also award a basic award to the employee. The basic award is calculated based on the employee’s age, length of service, and weekly pay, and is subject to a statutory cap. The current maximum basic award is £16,320.
It is important to note that the compensatory award and the basic award are separate and distinct from each other. The compensatory award is meant to compensate the employee for the financial loss they have suffered as a result of the unfair dismissal, while the basic award is meant to provide the employee with a minimum level of compensation for being unfairly dismissed.
In some cases, an employment tribunal may also award a reinstatement order or a re-engagement order in addition to the compensatory and basic awards. A reinstatement order requires the employer to reinstate the employee in their former position, while a re-engagement order requires the employer to offer the employee a different role within the company.
employment tribunal awards for unfair dismissal are not automatic, and the employee must prove that they have been unfairly dismissed in order to be awarded compensation. In order to prove unfair dismissal, the employee must show that the dismissal was not for a valid reason, that the correct procedures were not followed, and that the dismissal was not within the range of reasonable responses that a reasonable employer would have taken in the circumstances.
Employment tribunals will also consider whether the employer followed the ACAS Code of Practice on Disciplinary and Grievance Procedures when dismissing the employee. Failure to follow the ACAS Code of Practice may result in an increase in the compensation awarded to the employee.
In addition to financial compensation, employment tribunal awards for unfair dismissal can also have other consequences for the employer. For example, a successful unfair dismissal claim can damage the employer’s reputation, result in negative publicity, and affect the morale of other employees.
Overall, employment tribunal awards for unfair dismissal are an important tool for protecting the rights of employees and holding employers accountable for their actions. Employees who have been unfairly dismissed should seek legal advice and consider filing a claim with an employment tribunal to seek the compensation they deserve.