When an employee is unfairly dismissed from their job, they have the option to take their case to an employment tribunal. An employment tribunal is a legal body that hears disputes between employers and employees, and one of the most common types of cases they deal with is unfair dismissal. If an employment tribunal finds that an employee has been unfairly dismissed, they have the authority to award compensation to the employee. In this article, we will explore the process of making a claim for unfair dismissal and the factors that are taken into account when determining the amount of compensation awarded.
In the UK, employees who have been employed for at least two years have the right not to be unfairly dismissed. Unfair dismissal can occur for a variety of reasons, such as discrimination, whistleblowing, or being dismissed for exercising employment rights. If an employee believes they have been unfairly dismissed, they can make a claim to an employment tribunal within three months of the dismissal taking place.
When making a claim for unfair dismissal, the employee must prove that the dismissal was not justified and that the employer did not follow a fair procedure. The employment tribunal will consider factors such as the reason for the dismissal, the employer’s procedures for handling dismissals, and whether the employer acted reasonably in the circumstances.
If the employment tribunal finds that the employee was unfairly dismissed, they have the power to award compensation. The amount of compensation awarded will depend on a number of factors, including the employee’s length of service, their salary, and the circumstances of the dismissal. The maximum amount of compensation that can be awarded for unfair dismissal is currently £88,519, although in exceptional cases this limit can be exceeded.
In addition to compensation for loss of earnings, an employment tribunal may also award compensation for injury to feelings. This type of compensation is designed to reflect the emotional distress caused by the unfair dismissal and can range from a few hundred pounds to several thousand pounds, depending on the severity of the impact on the employee.
When determining the amount of compensation to be awarded for unfair dismissal, the employment tribunal will take into account a number of factors. These factors include the employee’s age, length of service, and earnings, as well as the circumstances of the dismissal. Compensation is intended to put the employee back in the position they would have been in if they had not been unfairly dismissed, so it will take into account any loss of earnings the employee has suffered as a result of the dismissal.
It is important to note that compensation for unfair dismissal is subject to statutory caps, which limit the amount that can be awarded in certain circumstances. These caps are in place to ensure that compensation awards are fair and proportionate, and to prevent employees from being overcompensated for their loss.
In addition to compensation for loss of earnings and injury to feelings, an employment tribunal may also award compensation for financial losses resulting from the dismissal. This can include costs such as loss of pension contributions, loss of benefits, and the cost of finding new employment. In some cases, the employer may also be ordered to pay interest on the compensation award.
Overall, employment tribunal awards for unfair dismissal are designed to provide compensation to employees who have been unfairly treated by their employers. The amount of compensation awarded will vary depending on the individual circumstances of the case, but the aim is always to put the employee back in the position they would have been in if they had not been unfairly dismissed. By understanding the process of making a claim for unfair dismissal and the factors that are taken into account when determining compensation, employees can ensure they receive the appropriate compensation for their loss.