When an employee is unfairly dismissed from their job, they may choose to take their case to an employment tribunal in order to seek justice. In these cases, the tribunal has the power to make awards to the employee as compensation for their unfair dismissal. In this article, we will explore the factors that can influence the amount of these awards and how they are calculated.
Unfair dismissal occurs when an employer terminates an employee’s contract of employment in a way that is considered to be harsh, unjust, or unreasonable. This can include situations where an employee is dismissed without proper notice, for reasons that are not valid, or in breach of their employment rights. In such cases, an employee has the right to challenge their dismissal through an employment tribunal.
When an employment tribunal finds that an employee has been unfairly dismissed, they have the authority to make an award to the employee. This award is intended to compensate the employee for the loss they have suffered as a result of their unfair dismissal. The amount of the award can vary depending on a number of factors, including the employee’s length of service, the circumstances of their dismissal, and the impact it has had on their life.
One key factor that can influence the amount of an employment tribunal award for unfair dismissal is the employee’s length of service with the employer. Generally, the longer an employee has been with a company, the higher the award is likely to be. This is because employees who have served a longer period of time with an employer are more likely to have built up a strong relationship with the company and to have a greater reliance on their job for income.
Another important factor that can affect the size of an employment tribunal award is the circumstances surrounding the employee’s dismissal. If an employer has acted in a particularly egregious or unfair manner when dismissing an employee, the tribunal may decide to award a higher amount of compensation. This could include situations where an employee has been dismissed for discriminatory reasons, in retaliation for whistleblowing, or in violation of their statutory rights.
Additionally, the impact of the unfair dismissal on the employee’s life and finances will also be taken into consideration when determining the amount of the award. For example, if an employee has struggled to find new employment after being unfairly dismissed, or has suffered emotional distress as a result of their dismissal, the tribunal may award a higher amount of compensation to reflect these damages.
It is important to note that there are limits on the amount of compensation that can be awarded in unfair dismissal cases. 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 means that even in cases where an employee has suffered significant losses as a result of their unfair dismissal, there is a limit to the amount of compensation they can receive.
In addition to compensatory awards, employment tribunals may also make awards for loss of statutory rights, such as loss of the right to notice or a redundancy payment. These awards are intended to ensure that employees are not left financially worse off as a result of their unfair dismissal and to restore them to the position they would have been in had they not been unfairly dismissed.
Overall, employment tribunal awards for unfair dismissal play an important role in ensuring that employees are treated fairly and that employers are held accountable for their actions. By understanding the factors that can influence the size of these awards, employees can better prepare themselves for the tribunal process and seek the compensation they deserve.