When an employee feels they have been unfairly dismissed from their job, they have the right to take their case to an employment tribunal. These tribunals are independent bodies set up to resolve disputes between employees and employers. If the tribunal finds that the dismissal was indeed unfair, the employee may be entitled to receive compensation known as an employment tribunal award.
In the UK, unfair dismissal is defined as when an employee is dismissed from their job in a way that is considered to be harsh, unjust or unreasonable. This can include being fired without a valid reason, being dismissed for reasons that are not connected to their work performance, or being dismissed without following the correct procedures. If an employee believes they have been unfairly dismissed, they have three months from the date of dismissal to submit a claim to the employment tribunal.
When an employee wins their unfair dismissal case at the employment tribunal, they may be awarded compensation. The amount of compensation awarded will depend on a number of factors, including the employee’s age, length of service, salary, and the circumstances surrounding their dismissal. In some cases, the tribunal may also order the employer to reinstate the employee in their job or offer them their job back.
The maximum amount of compensation that can be awarded for unfair dismissal is currently capped at £88,519 or 52 weeks’ pay, whichever is lower. This figure is reviewed annually and may be subject to change. In addition to compensation for financial loss, the tribunal may also award compensation for injury to feelings, which can range from £900 to £45,000 depending on the severity of the impact on the employee.
It’s important to note that not all cases of unfair dismissal will result in a financial award. In some cases, the tribunal may find that the dismissal was unfair but may not award compensation if they believe that the employee would have been dismissed fairly in due course. This is known as a “basic award” and is calculated based on the employee’s age, length of service, and weekly pay.
In addition to financial compensation, the tribunal may also order the employer to pay the employee’s legal fees and other expenses incurred during the tribunal process. This can include fees for legal representation, travel expenses, and other costs directly related to the case. These awards are meant to ensure that the employee is not financially disadvantaged as a result of taking their case to the tribunal.
When determining the amount of compensation to be awarded, the tribunal will take into account the employee’s financial losses as a result of the unfair dismissal. This can include things like lost earnings, loss of pension rights, and loss of benefits such as healthcare or company car allowances. The tribunal will also consider any mitigating factors, such as the employee’s efforts to find alternative employment or any contributory conduct on the part of the employee.
In some cases, the tribunal may reduce the amount of compensation awarded if they believe that the employee has contributed to their own dismissal in some way. This can include things like misconduct, poor performance, or a failure to follow company procedures. However, the tribunal must take into account the reasonableness of the employer’s decision to dismiss the employee and whether they followed fair procedures in doing so.
Overall, employment tribunal awards for unfair dismissal are meant to compensate employees for the financial and emotional impact of losing their job unfairly. They are designed to ensure that employees are treated fairly by their employers and that justice is served in cases where dismissals are found to be unjust or unreasonable. If you believe you have been unfairly dismissed from your job, it’s important to seek legal advice and consider taking your case to an employment tribunal to seek the compensation you may be entitled to.