Facing dismissal from a job can be a stressful and challenging time for any individual. The process of navigating through the legal landscape can be complex and overwhelming. In cases where an employee feels they have been unfairly dismissed, they may choose to take their former employer to an employment tribunal to seek justice. One of the outcomes of such tribunals is the awarding of compensation to the aggrieved party. In this article, we will explore the intricacies of employment tribunal awards for unfair dismissal and how they are calculated.
Unfair dismissal occurs when an employee is dismissed from their job in a manner that is considered to be harsh, unjust or unreasonable. It could be due to reasons such as discrimination, whistleblowing, or simply a lack of proper procedure followed by the employer. In such cases, the employee has the right to challenge the dismissal by taking their case to an employment tribunal. The tribunal will then determine whether the dismissal was fair or unfair based on the evidence presented.
If the tribunal finds in favor of the employee and rules that the dismissal was indeed unfair, they may order the employer to pay compensation. This compensation is intended to provide redress for the wrong done to the employee and may consist of two main components – the basic award and the compensatory award.
The basic award is calculated based on a statutory formula that takes into account the employee’s age, length of service, and weekly pay. The maximum amount that can be awarded for the basic award is currently capped at £16,320. However, it is important to note that this figure is subject to change and may be revised by the government from time to time.
In addition to the basic award, the tribunal may also award a compensatory award to the employee. This award is meant to compensate the employee for the financial losses they have suffered as a result of their unfair dismissal. The amount awarded for the compensatory award is calculated based on the actual financial losses incurred by the employee, such as loss of earnings, benefits, and future employment prospects. There is no statutory cap on the amount that can be awarded for the compensatory award, so the final figure will vary depending on the circumstances of each individual case.
It is worth noting that the tribunal may also take into account any efforts made by the employee to mitigate their losses by seeking alternative employment. If the tribunal finds that the employee has not made sufficient efforts to find new employment, this may impact the final amount awarded for the compensatory award.
In some cases, the tribunal may also make a separate award for injury to feelings. This is intended to compensate the employee for the distress, humiliation, and anxiety caused by the unfair dismissal. The amount awarded for injury to feelings will vary depending on the severity of the emotional harm suffered by the employee.
In addition to these awards, the tribunal may also order the employer to pay a further sum known as a “polkey award”. This award is intended to reflect the fact that even if the employer had followed a fair procedure, the employee would still have been dismissed. The amount awarded for a polkey award is typically a percentage of the compensatory award and is calculated based on the likelihood that the employee would have been dismissed anyway.
In conclusion, employment tribunal awards for unfair dismissal play a crucial role in ensuring that employees are protected from unjust treatment in the workplace. By understanding how these awards are calculated and the factors that are taken into consideration, employees can be better equipped to seek redress for the wrongs done to them. It is important for both employers and employees to be aware of their rights and obligations in order to promote fairness and justice in the workplace.