When an employee feels they have been 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 resolves disputes between employers and employees in the workplace. In cases of unfair dismissal, employees can seek compensation for the losses they’ve incurred as a result of losing their job. This compensation is known as an employment tribunal award.
employment tribunal awards for unfair dismissal can vary significantly depending on the circumstances of the case. The amount awarded to an employee will take into account factors such as the employee’s length of service, the reason for dismissal, and the financial losses they have suffered. In some cases, the award may also include compensation for injury to feelings or other non-financial losses.
There are two categories of unfair dismissal – procedural unfair dismissal and substantive unfair dismissal. Procedural unfair dismissal occurs when an employer fails to follow a fair process when dismissing an employee. This could include failing to give the employee a proper reason for dismissal, failing to give them the opportunity to appeal, or failing to follow the company’s own disciplinary procedures. Substantive unfair dismissal, on the other hand, occurs when an employer dismisses an employee for reasons that are not valid or justifiable. This could include dismissing an employee for discriminatory reasons, for exercising their employment rights, or for whistleblowing.
In the case of procedural unfair dismissal, the employment tribunal will consider whether the employer followed a fair procedure when dismissing the employee. If the tribunal finds that the procedure was unfair, they may award compensation to the employee based on the losses they have suffered as a result of the dismissal. This could include lost wages, loss of benefits, and other financial losses incurred due to the dismissal.
In the case of substantive unfair dismissal, the employment tribunal will consider whether the reason for dismissal was valid and justifiable. If the tribunal finds that the dismissal was unfair, they may award compensation to the employee based on the losses they have suffered as a result of the dismissal. This could include lost wages, loss of benefits, and other financial losses incurred due to the dismissal.
In addition to compensating the employee for financial losses, an employment tribunal award for unfair dismissal may also include compensation for injury to feelings. This type of compensation is awarded to employees who have suffered emotional distress as a result of their unfair dismissal. The amount of compensation awarded for injury to feelings will vary depending on the severity of the emotional distress suffered by the employee.
It’s important to note that there are limits to the amount of compensation that can be awarded in unfair dismissal cases. The statutory cap for unfair dismissal compensation is currently £88,519, or 52 weeks’ pay – whichever is lower. This means that even if an employee has suffered significant financial losses as a result of their unfair dismissal, they may not be able to recover more than the statutory cap in compensation.
In some cases, the employment tribunal may also award compensation for loss of future earnings. This type of compensation is awarded to employees who are unable to find new employment after being unfairly dismissed. The amount of compensation awarded for loss of future earnings will be based on the employee’s expected future earnings had they not been dismissed unfairly.
Ultimately, employment tribunal awards for unfair dismissal are designed to compensate employees who have been unfairly treated by their employers. The awards are intended to help employees recover financially from the losses they have suffered as a result of their unfair dismissal. By understanding the factors that influence the size of the award, employees can better prepare themselves for the process of seeking compensation through an employment tribunal.