When an employee feels that they have been unfairly dismissed from their job, they have the right to take their case to an employment tribunal. An employment tribunal is an independent body that has the power to make decisions on employment disputes, including unfair dismissal claims. If the tribunal finds in favor of the employee, they may be awarded compensation.
In this article, we will discuss everything you need to know about employment tribunal awards for unfair dismissal.
What qualifies as unfair dismissal?
Unfair dismissal occurs when an employee is dismissed from their job in a way that is not in line with the law. There are several reasons why a dismissal may be considered unfair, including discrimination, whistleblowing, trade union membership, pregnancy or maternity leave, exercising legal rights, or being a part-time or fixed-term employee.
employment tribunal awards for unfair dismissal
If an employment tribunal determines that an employee has been unfairly dismissed, they may award the employee compensation. The amount of compensation will vary depending on several factors, including the employee’s length of service, salary, and the circumstances surrounding the dismissal.
The two main types of compensation that can be awarded in cases of unfair dismissal are:
1. Basic award: This is based on the employee’s age, length of service, and weekly pay, up to a maximum of £16,320 as of April 2021. The maximum amount of compensation is subject to change each year.
2. Compensatory award: This is designed to compensate the employee for any financial losses they have suffered as a result of the unfair dismissal. This can include lost wages, benefits, and future earnings. The maximum amount that can be awarded is £89,493 or 52 weeks of the employee’s gross pay, whichever is lower.
Employment tribunal process
To make a claim for unfair dismissal, an employee must submit a claim to an employment tribunal within three months of being dismissed. The tribunal will then hold a hearing where both parties will have the opportunity to present their case.
During the hearing, the tribunal will consider evidence from both parties, including witness testimony and documents. They will then make a decision on whether the dismissal was unfair and, if so, what compensation should be awarded to the employee.
It is important to note that the process of going to an employment tribunal can be time-consuming and costly. It is recommended that employees seek legal advice before making a claim to ensure they have the best chance of success.
Factors influencing the amount of compensation
There are several factors that can influence the amount of compensation awarded in cases of unfair dismissal. These may include:
– The length of the employee’s service: Employees with longer service are generally entitled to higher compensation.
– The employee’s salary: Higher-earning employees may be awarded more compensation to reflect their higher earning potential.
– The circumstances of the dismissal: If the dismissal was particularly egregious or discriminatory, the employee may be awarded higher compensation.
– Mitigation: The tribunal will consider whether the employee has made efforts to mitigate their losses by finding new employment.
Appealing an employment tribunal decision
If either party is dissatisfied with the outcome of the employment tribunal decision, they may have the right to appeal to the Employment Appeal Tribunal. The appeal must be made within 42 days of the decision and must be based on an error of law or procedure.
In conclusion, employment tribunal awards for unfair dismissal are designed to compensate employees who have been unfairly dismissed from their jobs. The amount of compensation awarded will depend on a variety of factors, including the employee’s length of service, salary, and the circumstances surrounding the dismissal. It is important for employees to seek legal advice before making a claim to ensure they have the best chance of success.