Unfair dismissal is a serious issue that can have a significant impact on an individual’s career and financial stability. When an employee believes they have been unfairly dismissed from their job, they have the right to take their case to an employment tribunal to seek justice and potentially receive compensation for their losses. In this article, we will explore the process of making a claim for unfair dismissal and the types of awards that may be granted by an employment tribunal.
In the UK, unfair dismissal is a statutory claim under the Employment Rights Act 1996. An employee can bring a claim for unfair dismissal if they believe they have been dismissed without a fair reason or in a way that is not in accordance with the law. Common reasons for unfair dismissal include discrimination, whistleblowing, trade union activities, pregnancy, maternity leave, or asserting a legal right, such as the right to receive the national minimum wage.
To bring a claim for unfair dismissal, an employee must have been employed for at least two years (or one year if they started their employment before April 6, 2012). They must also make their claim to the employment tribunal within three months of the date of dismissal. Once a claim is submitted, the employment tribunal will consider the evidence presented by both parties and make a decision on whether the dismissal was unfair.
If the employment tribunal finds that the dismissal was unfair, they may order the employer to pay compensation to the employee. The amount of compensation awarded in unfair dismissal cases varies depending on the circumstances of the case. There are two main types of awards that may be granted by an employment tribunal in unfair dismissal cases: compensatory awards and basic awards.
Compensatory awards are designed to compensate the employee for their financial losses resulting from the unfair dismissal. This may include lost wages, benefits, and bonuses that the employee would have received if they had not been dismissed. The amount of compensation awarded will depend on factors such as the employee’s length of service, age, salary, and the availability of other employment opportunities. There is a statutory cap on compensatory awards, which is currently set at £88,519 or 52 weeks’ pay (whichever is lower).
In addition to compensatory awards, an employment tribunal may also award a basic award to an employee who has been unfairly dismissed. The basic award is calculated based on the employee’s length of service, age, and weekly pay, up to a maximum of £16,320. The purpose of the basic award is to provide a minimum level of compensation to employees who have been unfairly dismissed, regardless of their length of service or financial losses.
In some cases, an employment tribunal may also order an employer to reinstate or re-engage the employee who has been unfairly dismissed. Reinstatement involves returning the employee to their previous position with all the terms and conditions of their employment reinstated. Re-engagement involves offering the employee a different position with the same employer. If an employer refuses to comply with an order for reinstatement or re-engagement, they may be required to pay additional compensation to the employee.
It is important to note that employment tribunal awards for unfair dismissal are intended to compensate the employee for their losses, rather than to punish the employer. However, employers who consistently fail to follow fair procedures or discriminate against their employees may be subject to higher compensation awards to deter future misconduct.
In conclusion, understanding employment tribunal awards for unfair dismissal is essential for employees who believe they have been unfairly dismissed from their jobs. By seeking justice through the employment tribunal process, employees can hold their employers accountable for their actions and receive compensation for their losses. If you believe you have been unfairly dismissed, it is important to seek legal advice to determine your rights and options for pursuing a claim.