When an employee is unfairly dismissed from their job, they have the right to take legal action against their employer by filing a claim with an employment tribunal. An employment tribunal is an independent body that hears disputes between employers and employees and has the authority to award compensation to employees who have been unfairly dismissed. In this article, we will explore the process of making a claim for unfair dismissal and the factors that determine the amount of compensation awarded by the tribunal.
Unfair dismissal occurs when an employer terminates an employee’s contract of employment without a valid reason or without following the correct procedures. Examples of unfair dismissal include being fired for exercising legal rights such as taking maternity leave, requesting flexible working arrangements, or raising health and safety concerns. It can also occur when an employer fails to give an employee a fair chance to improve their performance before dismissing them.
To bring a claim for unfair dismissal, an employee must have worked for their employer for at least two years (or one year if their employment started before 6 April 2012) and must lodge their claim with the employment tribunal within three months of their dismissal. The tribunal will then consider the circumstances of the dismissal and decide whether it was fair or unfair.
If the tribunal finds that the dismissal was unfair, it has the power to award compensation to the employee. The amount of compensation awarded will depend on a number of factors, including the employee’s length of service, their age, and their salary. The tribunal will also take into account any loss of earnings the employee has suffered as a result of their dismissal, as well as any non-financial losses such as injury to feelings or loss of reputation.
In cases of unfair dismissal, the tribunal may award two types of compensation: a basic award and a compensatory award. The basic award is calculated based on the employee’s length of service, their age, and their weekly pay, up to a maximum of £16,410. The compensatory award, on the other hand, is intended to compensate the employee for any financial losses they have suffered as a result of their dismissal, such as loss of earnings and future earnings potential. The compensatory award is also subject to a cap, which is currently set at £89,493 or one year’s gross salary, whichever is lower.
In addition to these two types of compensation, the tribunal may also award additional damages in cases where the employer’s conduct has been particularly egregious. This can include situations where the employer has discriminated against the employee, victimised them for whistleblowing, or failed to follow the correct dismissal procedures. In such cases, the tribunal may award an additional sum of money to reflect the employer’s misconduct and to deter them from engaging in similar conduct in the future.
It is important to note that the tribunal has the discretion to adjust the amount of compensation awarded based on the particular circumstances of each case. For example, if the employee has contributed to their dismissal by their own misconduct or by failing to mitigate their losses, the tribunal may reduce the amount of compensation awarded. Similarly, if the employee has found new employment since their dismissal, the tribunal may take this into account when calculating the compensatory award.
In conclusion, employment tribunal awards for unfair dismissal are intended to compensate employees who have been unfairly treated by their employers and to deter employers from engaging in unfair practices. If you believe you have been unfairly dismissed, it is important to seek legal advice as soon as possible to understand your rights and options for redress. By taking action through the employment tribunal, you may be able to secure compensation for your losses and hold your employer accountable for their actions.