Unfair dismissal is defined as the termination of an employee’s contract without a valid and justifiable reason. When an employee feels that they have been unfairly dismissed, they have the option to challenge their former employer by taking their case to an employment tribunal. If the tribunal rules in favor of the employee, they may be entitled to receive compensation in the form of an employment tribunal award.
employment tribunal awards for unfair dismissal are intended to compensate the employee for the financial losses they have incurred as a result of their unfair dismissal. These awards can vary depending on the circumstances of the case, including the length of the employee’s service, the reason for their dismissal, and the impact that the dismissal has had on their career prospects.
There are two types of awards that can be made by an employment tribunal in cases of unfair dismissal: basic awards and compensatory awards. Basic awards are calculated based on the employee’s length of service, age, and weekly pay. The maximum amount that can be awarded for a basic award is currently £16,320. This figure is subject to change, so it’s important to check the most up-to-date information when pursuing a claim.
Compensatory awards, on the other hand, are intended to compensate the employee for the financial losses they have incurred as a result of their unfair dismissal. These losses can include lost wages, bonuses, and benefits, as well as any expenses that the employee has incurred as a result of their dismissal, such as legal fees or retraining costs. The maximum compensatory award that can be made is currently £89,493 or 52 weeks’ pay, whichever is lower.
In addition to basic and compensatory awards, employment tribunals can also make additional awards in cases of unfair dismissal. These additional awards can range from £500 to £10,000 and are intended to punish the employer for their actions and deter them from engaging in similar behavior in the future. The amount of the additional award will depend on the severity of the employer’s conduct and the impact that it has had on the employee.
It’s worth noting that employment tribunal awards for unfair dismissal are not taxable, so employees who receive compensation as a result of a successful unfair dismissal claim will not have to pay tax on the award. This can provide some relief to employees who have already suffered financial losses as a result of their unfair dismissal.
Employers who are found to have unfairly dismissed an employee may also be ordered to reinstate or re-engage the employee in their former role. Reinstatement involves placing the employee back in their original position and treating them as if they had never been dismissed. Re-engagement, on the other hand, involves offering the employee a new role with the employer that is comparable to their original role. If an employer fails to comply with an order for reinstatement or re-engagement, they may be required to pay additional compensation to the employee.
In conclusion, employment tribunal awards for unfair dismissal are intended to compensate employees for the financial losses they have incurred as a result of their unfair dismissal. These awards can vary depending on the circumstances of the case and can include basic awards, compensatory awards, and additional awards. Employees who feel that they have been unfairly dismissed should seek legal advice to determine whether they have a valid claim and to understand their rights and options for pursuing a claim.