Understanding Employment Tribunal Awards For Unfair Dismissal

Employment tribunals are independent bodies that hear and resolve disputes between employers and employees. One of the most common disputes that employment tribunals deal with is unfair dismissal. Unfair dismissal occurs when an employee is dismissed from their job in a manner that is considered to be harsh, unjust, or unreasonable. When an employee believes that they have been unfairly dismissed, they have the right to bring a claim to an employment tribunal.

The purpose of an employment tribunal is to determine whether the dismissal was fair or unfair and to provide appropriate remedies if necessary. If an employment tribunal finds that an employee has been unfairly dismissed, they may award them compensation in the form of a financial payment known as an employment tribunal award.

employment tribunal awards for unfair dismissal can vary depending on the circumstances of the case. The maximum amount of compensation that can be awarded for unfair dismissal is £89,493 or 52 weeks’ pay, whichever is lower. This amount is subject to change and may be updated periodically.

There are two main types of compensation that can be awarded in unfair dismissal cases: basic award and compensatory award.

The basic award is calculated based on the employee’s age, length of service, and weekly pay. The formula for calculating the basic award is as follows:

– For each full year of service under the age of 22: 0.5 week’s pay
– For each full year of service between the ages of 22 and 41: 1 week’s pay
– For each full year of service over the age of 41: 1.5 week’s pay

The compensatory award, on the other hand, is designed to compensate the employee for their financial losses as a result of the unfair dismissal. This includes loss of earnings, loss of benefits, and any other financial losses that the employee has suffered due to being unfairly dismissed.

In addition to the basic and compensatory awards, employment tribunals may also award additional amounts in certain circumstances. For example, if an employer has failed to follow the correct procedure for dismissing an employee, the tribunal may award additional compensation known as a “Polkey award”. This is designed to compensate the employee for the loss of a fair procedure.

employment tribunal awards for unfair dismissal can also include compensation for injury to feelings. This is awarded in cases where the dismissal has caused the employee emotional distress, humiliation, or loss of dignity. The compensation for injury to feelings is intended to reflect the impact that the unfair dismissal has had on the employee’s mental well-being.

It is important to note that not all unfair dismissal claims result in a financial award. In some cases, the employment tribunal may order the employer to reinstate or re-engage the employee. Reinstatement means that the employee is returned to their original job with no loss of continuity of service, while re-engagement means that the employee is offered a different job with the same employer.

employment tribunal awards for unfair dismissal are not intended to punish the employer, but rather to compensate the employee for the losses that they have suffered as a result of the unfair dismissal. It is important for employers to be aware of their obligations and to follow the correct procedures when dismissing an employee to avoid potential claims and awards.

In conclusion, employment tribunal awards for unfair dismissal play a crucial role in ensuring that employees are treated fairly and that employers are held accountable for their actions. Understanding the different types of compensation that can be awarded in unfair dismissal cases is essential for both employers and employees. By following the correct procedures and treating employees fairly, employers can avoid costly tribunal awards and maintain positive relationships with their workforce.